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July 7, 2010 Wednesday 12:28 PM EST
LENGTH: 144 words
HEADLINE: BofA cuts Fed rate, Treasury yield forecasts
BYLINE: Deborah Levine
NEW YORK (MarketWatch) — Bank of America Merrill Lynch now sees the Federal Reserve keeping its target interest rate at current levels until March 2012, delaying its forecast from expectations of a rate hike in August 2011. The firm cut its U.S. economic growth forecasts for 2011 and 2011, citing weaker job growth and a slowdown in household consumption, new homes and inventories. Yields on 10-year notes (ust10y) , currently near 14-month lows at 2.95%, will end 2010 at 3.25% analysts said, compared to a previous prediction that yields would increase to 3.75%. Conventional 30-year fixed-rate mortgages will be “5% or less well into 2011,” though national home prices have likely bottomed, they said in a report released Wednesday. © 1997-2008 MarketWatch.com, Inc. All rights reserved. See details at http://custom.marketwatch.com/custom/docs/useragreement.asp.
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