U.S. Treasury Yields: Fiscal Choices and Global Investor Confidence Drive Trajectory

According to Ipek Ozkardeskaya, strategist at Swissquote Bank, the trajectory of U.S. Treasury yields is shaped by two key factors. Firstly, fiscal decisions made by the United States, such as budget sustainability and debt control plans, will play a crucial role in determining yield trends. Secondly, global investor sentiment significantly influences the willingness to finance U.S. deficits. This sentiment is impacted by several factors including geopolitical tensions, declining dollar appeal, and weakening confidence in U.S. Treasuries as a safe-haven asset – all of which are contributing to market volatility.