BofA Strategist: Carry Trades Need Lower Rate Volatility, Rangebound US Rates

The strategist's framing puts the carry-trade revival on a macro precondition rather than on risk appetite alone: rate volatility has to cool, and US rates need to settle into a range. That matters because carry returns are most fragile when the rate path itself is the source of losses, not the underlying yield gap. The oil reference adds a second condition, linking the trade to inflation pressure staying contained. Whether volatility actually compresses, and whether oil holds below that threshold, is the open question for anyone tracking cross-asset positioning.