📝 Expect The Yield Curve To Invert Again By Year-End: BofA

Revising year-end targets for the U.S. 2-year yield at 3.5% and for the 10-year yield at 3.25%. We have been stopped out of our previous week recommendation to lean long into the duration selloff. We see the 2-year and 10-year yields falling in 2023 due to an economic slowdown. We still believe current fundamentals justify a de-risking of portfolios into fixed income in anticipation of moderating inflation & growth, and rates may resume decline if volatility subsides - BofA Rates Strategy