U.S. Treasury Yields Expected to Rise Amid Fed Rate Speculations

According to Odaily, analysts from BNP Paribas have indicated in a report that if the market dismisses expectations of a Federal Reserve rate cut this year, the yield on U.S. two-year Treasury bonds is likely to increase in the coming months. The analysts predict that by September 2025, the market will eliminate the anticipated two rate cuts for this year, postponing them to 2026. This shift is expected to cause the two-year Treasury yield to rise before declining by the end of the year. The yield is projected to reach 4.10% in the third quarter and decrease to 4.00% in the fourth quarter. The analysts also foresee the Federal Reserve implementing four rate cuts in 2026.