OECD increased its GDP forecast for the World to %5.6 from %4.2. OECD sees overall improvement but the biggest contributor to this big change is the US. Fast vaccinations and Biden’s massive stimulus bill expected to jumpstart the US economy. Forecast for US GDP hikes to %6.5 from %3.2, more than doubled. FED’s current forecast is %4.2 and most probably will be hiked at this month’s FOMC meeting. Eurozone’s OECD forecast increased to %3.9 (same with ECB) from %3.6 while China lowered to %7.8 from %8 (Chinese government expects %6 growth in 2021.).
While OECD hiking economic forecasts 10-year bond sell-off take a pause and rates turned from %1.6-%1.7 resistance zone but still over the 13-day moving average and the short-term bullish trend continues.
