THE NORMALIZATION OF THE YIELD CURVE — with long-term bonds paying more than short-term bonds — was considered a key event to look out for in 2025. As it turned out, in the first few weeks of this year the surge of 10-year Treasury yields has proven to be a big story.
“Bond yields don't always dominate the headlines, but they're now capturing attention for what they say about a strong economy, inflation and the likely path of Federal Reserve interest rate cuts,” says Chris Hyzy, Chief Investment Officer, Merrill and Bank of America Private Bank.
In this video, Hyzy and Matthew Diczok, head of Fixed Income Strategy for the Chief Investment Office (CIO), Merrill and Bank of America Private Bank, discuss the yield story and what it means for investors.
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Important disclosures
The opinions expressed are as of 1/21/2025 and are subject to change.
Investing involves risk, including the possible loss of principal.
Past performance is no guarantee of future results.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
BofA Global Research is research produced by BofA Securities, Inc. (“BofAS”) and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC and wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
