We are sticking with our core scenario of a 10-year Treasury yield of 2.8-3.0% by year’s end. However, the chances of a yield as low as 2.5% are rising.At the beginning of 2017, in our outlook for sovereign bonds, we forecasted that the 10-year US Treasury yield would rise to 2.8-3% by year’s end. However, yields have been stuck in a range of 2.2-2.6%, so a review looks warranted.Indeed, the risk has increased of an alternative to the core scenario, but we are sticking to our target. We...
Read More »U.S. Treasuries tugged between fear and hope
Macroview Several factors have led us to revise downward our target 10-year U.S. Treasury rate for end 2016. Read full report hereAs we arrive close to the end of the first half of 2016, it is time to revisit our 2016 scenario for US Treasuries. Since we formulated our scenario in October 2015, giving a target 10-year US Treasury yield of 2.7% for the end of 2016, many things have changed. First, the beginning of the year saw considerable turmoil in financial markets, with negative...
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