Bank of America hikes 10-year yield forecasts

Bank of America Merrill Lynch upgraded its year-end forecasts for the 10-year bond yields of the U.S., the U.K. and Germany. It lifted its 10-year yield U.S. view to 2% from 1.25%, its German view to -0.2% from -0.75% and its U.K. view to 0.8% from 0.5%. "Relative to our more pessimistic revision in August, the US and China are working to de-escalate trade tensions, no-deal Brexit risks have been banished for now, global data have started to stabilize, and central banks have shifted from dovish to neutral policy stances," the broker said. The new forecasts are much closer to current levels -- the U.S. 10-year yield was 1.94%, the German 10-year yield was -0.24% and the U.K. 10-year yield was 0.81%.

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