Predicting higher yields next year is a December tradition
Predicting higher yields next year is a December tradition.
This year it's Bank of American Merrill Lynch forecasting that US 10-year yields will move to 2.85% in the first quarter of the year and 'toward' 3% by the end of 2018.
They believe US tax reform may have more impact than the market thinks.
"We believe the curve will steepen and interest rate vol will pick up," they write.
One of their top trades for next year is a 2s10s steepener.
