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

According to PANews, SEB Research Chief Strategist Jussi Hiljanen has indicated in a report that if expectations for significant interest rate cuts by the Federal Reserve persist, the yield on the U.S. 10-year Treasury bond is anticipated to decrease to between 3.8% and 3.9% within the next three to six months. Hiljanen noted that the Federal Reserve's decision to conclude its quantitative tightening policy in early December, along with a narrowing policy rate spread that reduces hedging costs for international real funds, should support Treasury bonds. This scenario could potentially drive yields further downward.