BofA revised up its target citing a “much more aggressive” U.S. fiscal stimulus impulse and rapid vaccinations in the United States.
The bank also revised up its target for German 10-year Bund yields, the benchmark for the euro area, to -0.25% from -0.40% previously, to reflect the potential for further economic surprises in the United States.
But BofA noted lockdowns in the euro area are lasting longer and becoming stricter, with vaccinations slower than planned and EU fiscal stimulus unchanged and “stuck in a bureaucratic quagmire”.
In Britain, it forecasts 10-year Gilt yields at 0.95% by year-end, balancing a positive near-term economic outlook against a cautious medium-term outlook.
Source: Economy - investing.com
