It appears a major shift is underway in the bond market.
BofA Global Research’s Mark Cabana sees an improving jobs market adding fuel to the Treasury yield rally and providing some relief to the Federal Reserve ahead of Tuesday’s policy meeting.
“We were really thinking that the economy would still really struggle to rebound in Q2, slowly begin to grow in Q3 and then more meaningfully be rebounding in Q4,” the firm’s head of US rates strategy told CNBC’s “Trading Nation” on Monday. “But the risk is it all happens sooner, and that would be a pleasant surprise.”
Cabana’s forecast calls for the benchmark 10-year Treasury Note yield to hit one percent by year end and 1.25% by the end of…