BoA says the Federal Reserve and US government should "stop playing Superman"

<p>Bank of America analysts say that US Treasury yields dropping back from the recent 16-year highs are encouraging:</p><ul><li>BofA Rates Strategy holds the baseline view that fair value for the 10 year UST yield is in the 4.03.10-425% range and we will get there by year-end 2023</li></ul><p> but their outlook for US equities:</p><ul><li>“Bond yields may go lower in ’24 but no secular bull market until Fed/govts stop playing Superman, put on their ‘seatbelts’ &amp; express the need for lower deficits” </li><li>and also noted that cash and T-bills levels as a percentage of overall BofA assets under management have reached levels not seen since March 2020</li></ul><p>Meanwhile, economists at the bank say that US economic data continue upside surprises while inflation continues to grind lower.</p><ul><li>maintains its view that recession will be avoided</li><li>low growth will emerge in 2024, 0.5% GDP growth expected for Q2/Q3 2024</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.