Recent U.S. 10-year bond yields pumped up, triggering a correction in global technology stocks. Bank of America released a report1 saying that U.S. 10-year Treasury yields will continue to climb as the market’s bearish bias toward bonds remains in place.
The bank’s strategist Paul Ciana pointed out in the report that his team studied the magnitude, duration, technical patterns and trends of previous uptrends in bond yields to support its view that 10-year yields have not yet peaked and that investors remain bearish on bonds, especially 5-year and even 2-year bonds.
At the same Time, the Bank expects the U.S. 30-year Treasury yield to peak at a level near 2.24% to 2.69% between August 2021 and January 2022.
The Bank also said that the 5-year Treasury yield may peak at around 1.5%, between April and September.
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