$Stock*Shop*Charts*News*Option$

[sludgehound]

Fed's dot outlook from UBS

14:56 EDT - There's been plenty of analysis recently arguing that persistently low US Treasury yields are partly due to expectations that the Fed's policy rate in the future will remain below pre-crisis levels. UBS doesn't fully buy it, but says the market's focus on this topic puts the spotlight on the Fed's long-run rate projection in its dot plot. In March, average forecast for the long-run policy rate was 3.875%. UBS believes next Wednesday's updated projections will show a somewhat higher average, with new Fed governor Fischer's dot likely coming in at 4% and new Cleveland Fed chief Mester's likely at 4% or 4.25%. ([e-mail]; @cynthialin_dj)

(END) Dow Jones Newswires
06-09-14 1456ET