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5 May 2015
UST 10y expected at 2.35% by year-end – BAML
FXStreet (Edinburgh) - Analyst Dora Xia at BAML sees the UST 10-year yields at 2.35% towards the end of the current year.
Key Quotes
“Our forecast for 10y rates at the end of 2015 remains at 2.35%”.
“The forecast is slightly higher than the implied year end forward rate of 2.22%, but lower than the Bloomberg median forecast of 2.50%”.
“We continue to believe that a gradual Fed and low terminal rate in the presence of subdued inflation as well as low global yields will put a lid on high long end rates can go”.
“We continue to look for the first Fed rate hike in September, followed by hikes at every other meeting”.
Key Quotes
“Our forecast for 10y rates at the end of 2015 remains at 2.35%”.
“The forecast is slightly higher than the implied year end forward rate of 2.22%, but lower than the Bloomberg median forecast of 2.50%”.
“We continue to believe that a gradual Fed and low terminal rate in the presence of subdued inflation as well as low global yields will put a lid on high long end rates can go”.
“We continue to look for the first Fed rate hike in September, followed by hikes at every other meeting”.