HALISTER1: SocGen Lowers End-2017 UST 10Y Forecast to 2.70% From 2.90%

SocGen Lowers End-2017 UST 10Y Forecast to 2.70% From 2.90%

(Bloomberg) -- U.S. Treasury yield forecast is revised lower “with risks tilted to the downside,” based on lower expectations for tax cuts and other pro-growth policies, slowdown in core inflation and market-implied skepticism that Fed can raise rates more than once next year, Societe Generale strategists led by Subadra Rajappa say in note.
  • Soc Gen still expects “modest rise” in yields this year driven by possibility of Fed rate hikes, balance sheet normalization and potential for ECB tapering
  • Firm recommends neutral duration stance near term, bearish tilt medium term
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Jenny Paris

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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GLE FP (Societe Generale SA)

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Subadra Rajappa (Societe Generale SA)

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