Currencies in China, Brazil, Canada and Australia all offer attractive returns in the coming months, compared to sub-par performance from the euro, British pound and Japanese yen, according to Paul McCulley, a fund manager at Pacific Investment Management Co.

U.S. 10-year Treasury yields will trade around 3.50% and 4.25%, he said, as the Federal Reserve continues to keep interest rates at record lows into next year.

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