Omicron & Powell present risks to our Treasury yield view

The spread of the Omicron variant and Fed Chair Powell’s latest comments to Congress both present some downside risks to our view that the 10-year US Treasury yield will end next year some way above its current level.
Oliver Allen Markets Economist
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Our monthly Long Run Returns Monitor provides our updated long-term projected returns for major asset classes, as well as a summary of the macroeconomic forecasts which underpin them. All projections in this publication are as of 23rd November 2021. A more detailed explanation of our views can be found in our annual Long Run Economic Outlook and Long Run Asset Allocation Outlook.

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