Wall Street Again Slashes 2017 Yield Forecasts Ahead of Fed Hike
- Consensus for 10-year Treasury yield at year-end falls to 2.7%
- U.S. debt attracts investors as inflation expectations subdued
Pedestrians cast shadows as they walk on Wall Street near the New York Stock Exchange (NYSE) in New York, U.S., on Monday, March 7, 2016. U.S. stocks fluctuated near two-month highs as commodity shares surged with crude oil, offsetting declines among technology and consumer companies as investors assessed China's growth prospects.
Photographer: Michael Nagle/BloombergAnother month gone by, another rethink on Wall Street about how high U.S. yields can climb.
The weighted average year-end estimate for 10-year Treasury yields fell to 2.7 percent, based on a Bloomberg survey published last week, down about 20 basis points from two months ago. The result brings the consensus forecast back to lowest level of 2017, set in January. The third straight monthly downward revision in the survey’s median projection came less than a week before Federal Reserve officials are expected to tighten policy for the third time in six months. The note ended the week at 2.2 percent.