FXStreet (Barcelona) – Strategists at BofA-Merrill Lynch, offer the outlook for US treasuries and European bunds in a nutshell.
Key Quotes
“US: 10y expected to end 2015 at 2.35%, and position for September Fed rate hike. Recommend 5s-30s curve flatteners. Middle of curve could further sell off, while dollar strength and Greece concerns should cap moves out the curve.”
“Europe: Volatility is extremely elevated in Bunds, but at current yields we see risks as asymmetric and believe renewed demand from real money and Greek risks should provide some support.”
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