U.S. Treasury Yields Expected to Decline Amid Fed Rate Cut Expectations

Financial analysts are anticipating a decrease in U.S. 10-year Treasury bond yields, with projections ranging from 3.8% to 3.9%. SEB Research Chief Strategist Jussi Hiljanen highlights that this decline could occur within the next three to six months if Federal Reserve rate cuts become more likely. He points out the upcoming conclusion of quantitative tightening by the Fed and a narrowing policy rate spread as key factors that support Treasury bonds. This confluence of events has the potential to push yields down further.