Capital Economics: US Treasury yields are unlikely to fall further significantly in the short term

Jonas Goltman, deputy chief market economist at Capital Economics, said U.S. Treasury yields may be about to bottom out. He noted that U.S. Treasury yields have recently fallen due to renewed trade tensions, but "unless the trade war truly flares up again, we don't believe U.S. Treasury yields will fall significantly further in the short term." Goltman explained that the main reason for the current relatively low U.S. Treasury yields is that, although market concerns about a recession have eased, "the Fed's policy outlook has clearly shifted toward lower interest rates in recent months." He added that Fed Chairman Powell also made it clear in his speech on Tuesday that he still plans to continue cutting interest rates. (Jinshi)