Bank of America: Buy US Treasuries Lagging in the Rebound Amid US-Iran Tensions

Wallstreetcn
2026.04.20 18:19

Bank of America stated that US Treasuries are still pricing in the Middle East war, while other asset classes have already moved past this event. Bank of America strategists advise purchasing mid-curve bonds and executing steepener trades, anticipating a rebound as market positioning for Federal Reserve rate cuts intensifies. Strategists forecast that as markets refocus on macroeconomic fundamentals, shifts in Fed leadership, and US Treasury supply dynamics, yields along the mid-curve will fall, causing the yield curve to steepen.