Strategists Ponder Sub-1% U.S. Yields
- BofA, BMO see chance of a big drop in 10-year Treasury rates
- ‘Self-fulfilling trap’ may pressure Japan, Germany yields too
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The Federal Reserve’s ready-to-act tone Wednesday is prompting strategists to fret about just how far U.S. yields, which are already near historic lows, could sink.
Take Bank of America Corp.’s Bruno Braizinha, for example. His baseline forecast is still mild: 2.05% for 10-year Treasuries in the first quarter of next year, close to the current level of 2%. But he’s entertaining the possibility that the rate could get close to zero by the end of next year.