BofA’s Gaping 10-Year Bond Call Shows Market’s Uncertain Outlook
- Analysts see 10-year yields falling below 1% or rising to 2%
- JPMorgan survey shows highest neutral positioning in months
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For a sense of just how uncertain the outlook for Treasuries has become, look no further than Bank of America Corp.’s latest rates forecast.
Strategists at the Charlotte, North Carolina-based bank see 10-year yields either sliding below 1% by year-end, or surging as high as 2%, from a current level of about 1.26%. For now, yields are likely to stay in their recent trading range until clarity emerges on the path of inflation, the impact of coronavirus variants and the Federal Reserve’s policy response, the strategists said in a report Tuesday.