Majority of fund mangers expect Treasury yield curve to steepen - BoAML survey

A majority of fund managers expect the Treasury curve, as represented by the 10-year yield, to steepen, although the number of respondents saying this declined by 11 percentage points to 66% in January, Bank of America Merrill Lynch’s (BoAML) January survey of global fund managers shows. 

A steepening of the yield curve could bode well for the USD/JPY pair, which is currently trading at 109.90. 

Key points (source: citywire.co.uk)

• A net 36% of professional investors now expect global growth to improve over the next 12 months.
• Fund managers have ‘completely priced out’ recession risks.
• Fund managers boosted their equity allocations to a net 32% overweight – the highest in 17 months.