9 Jul 2015
Fixed Income: Outlook for US and European bonds – BofA
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.”
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.”