Diminished Fed Rate Cut Hopes to Keep U.S. Treasury Yields Elevated

24.06.11 News

U.S. Treasury yields are expected to remain stable over the next three months and decline slightly by year-end due to diminishing expectations of Federal Reserve interest rate cuts. After a significant drop from October’s peak of 5.02%, yields have rebounded to 4.44% amid strong economic data and persistent inflation. Financial markets now anticipate only two 25-basis-point rate cuts this year, starting in September, with some economists predicting even fewer cuts. According to a Reuters poll, the 10-year Treasury yield is forecast to be around 4.35% at the end of August, then gradually decrease to 4.23% and 4.13% over the next six and twelve months.

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