VIEW: Friday saw Bank of America Research.......>

FED: VIEW: Friday saw Bank of America Research note that "market participants

have recently focused on the possibility of negative US rates. This speculation

has pushed FOMC OIS & fed funds futures with maturities in 2021 into negative

territory and resulted in a material pushback from Fed officials. The vol market

is now pricing 1y negative rate probabilities of 17.5% for end 2020 and 32% for

end 2021. We still recommend fading market pricing of negative rates - the Fed

has been very clear that they are not supportive even with downside economic

risks and there are numerous operational hurdles to implementing negative rates.

If clients want to position for a Fed that will ease further we would suggest

better risk/reward tradeoffs are in lower longer-dated real rates or higher

breakevens."