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Shooting for Remarkable Recovery

US TSYS

Pinning hopes on another massive stimulus relief package, John D. Herrmann, director rates strategy for MUFG Securities Americas said their models forecasts the U.S. economy is shooting for a "remarkable recovery" in 2021 through 2021.

  • Should President Biden's $1.90 trillion program (and a subsequent infrastructure bill) be "passed" in any form of in the range of +$1.350 trillion to $1.90 trillion, then our models forecast of +6.494% yoy growth likely would strengthen towards +7.874% yoy for the year 2021 (possibly even eclipsing +8.00% yoy growth)
  • Hermann said their models "continue to forecast the 30-year Treasury Bond's yield to rise toward 2.60% over the coming twelve-months (give or take) and for the 2s-30s Treasury yield curve to further steepen towards +230.0 bp"

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