Wall Street expects U.S. Treasury yields to normalize in the 4%-5% range. Bloomberg economists estimate the 10-year U.S. Treasury yield to be close to 4.7% and note that structural factors may limit Donald Trump's efforts to cut interest rates.
US Treasury yields are reaching their highest levels since 2008, with the market widely anticipating further interest rate hikes from the Federal Reserve. Bloomberg economists analyze that structural factors such as increasing government debt, weakening global savings, rising defense spending, and the AI investment boom are pushing up borrowing costs. This could structurally constrain Donald Trump's efforts to significantly lower interest rates.
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Source:X@DeItaone · Source Link
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