US Interest Rates Have Room To Run Higher: BAML

When the yield on the US Ten Year Note was trolling near the bottom of its all-time range at 1.46% this past August, the thought of a Donald Trump presidency and fiscal stimulus wasn’t much of a glint in the market’s eye. Fast forward to the aftermath of a tumultuous US election with a rate hike approaching in December – and a handful anticipated in 2017 – and the Ten Year Note is now yielding 2.31%, a significant jump in US interest rates. In fact, the spread between the US and German ten year rate, a scant 0.23%, has hit…