According to a recent BofA Global Research survey, 42% of fund managers expect the 10-year U.S. Treasury yield to peak above 5% in 2025, reflecting a cautious outlook amid global inflation concerns. The survey, conducted from January 10-15, 2025, gathered insights from 48 fund managers with $760 billion in assets under management. Despite the anticipation of higher yields, the survey reveals that long USD positions are perceived as the most crowded trade, posing a significant headwind for the dollar. "Positioning is now seen as the biggest USD headwind," BofA analysts note, highlighting the potential for market shifts as global inflation re-acceleration emerges as a key theme for 2025. The survey also indicates that less than a third of respondents expect the 10-year Treasury yield to fall below 4%, underscoring a divided sentiment on future rate movements.