And the hits keep on coming. Shortly after every bank slashed global growth forecasts (with markets to follow) following the Brexit outcome, which virtually every sellside strategist is confident will unleash a modest recession in the UK in 2017, moments ago Bank of America released its latest global macro forecast., which was summarized as follows by Bloomberg.
2Y yield: 0.65% (3Q), 0.75% (4Q)
5Y yield: 0.85% (3Q), 1.00% (4Q)
10Y yield: 1.25% (3Q), 1.50% (4Q)
30Y yield: 2.00% (3Q), 2.25% (4Q)
BofA's Shyam Rajan adds that yield curves should generally flatten as intermediate yields run out of room and 30Y "is the most attractive point to global investors" and that Yields should rebound during 4Q following U.S. presidential election...