UBS predicts that the Federal Reserve's interest rate cuts will bring the yield on the 10-year U.S. Treasury bond down to 3.5%

According to Jinshi News, UBS pointed out in a outlook report that the rapidly growing debt in the United States means that investors will continue to demand higher term premiums to invest in long-term government bonds, which will cause the yield curve to steepen again. However, UBS analysts stated that the yield on the U.S. ten-year Treasury bonds will still decline, as the Federal Reserve may further cut interest rates. They expect the yield on ten-year U.S. Treasury bonds to drop to 3.5% next year, and then rise to 4% by the end of 2026.