BofA’s Hartnett Sees Pressure on Risk Assets If Bond Plan Fails

Bank of America strategist Michael Hartnett warns that a failure of the US Treasury’s effort to contain long-term yields could pressure the dollar and increase short positioning against riskier assets ahead of the November midterm elections. The scenario implies a shift toward risk-off sentiment and potential cross-asset volatility, particularly in USD and equity risk appetite.

Analysis

Bank of America strategist Michael Hartnett warns that a failure of the US Treasury’s effort to contain long-term yields could pressure the dollar and increase short positioning against riskier assets ahead of the November midterm elections. The scenario implies a shift toward risk-off sentiment and potential cross-asset volatility, particularly in USD and equity risk appetite.