U.S. 10-Year Yield Seen in 3.75%-4.75% Range Next Year
·1 min
The 10-year U.S. Treasury yield is anticipated to fluctuate between 3.75% to 4.75% in the coming year, assuming no significant disruptions related to fiscal deficits. Nevertheless, experienced volatility in this yield is likely to remain elevated. At present, it stands at 4.45%, marking a slight increase.
On the other hand, the shorter end of the U.S. Treasury yield curve shows greater stability, despite ongoing fluctuations in the longer end. With limited expectations for Federal Reserve rate cuts ahead, the 2-year Treasury yield has hovered around 4.25% recently, although it now rests at 4.34%. A potential new tariff regime, which could trigger inflation, may lead to a more measured approach to any future interest rate reductions.