US 10-year seen at 2.35 by year-end – BAML

FXStreet (Edinburgh) – In the opinion of analysts at BAML, the US 10-year benchmark is expected to end the year around 2.35%.

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 2.33%, but lower than the Bloomberg median forecast of 2.52%”.

“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”.

In the opinion of analysts at BAML, the US 10-year benchmark is expected to end the year around 2.35%…

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