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Bloomberg Quint
2d
206
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Wall Street Sides With Federal Reserve And Sees Lower US Bond Yields In 2025
- Wall Street is aligned with the Federal Reserve, anticipating short-term US Treasury yields to fall in 2025 despite Donald Trump’s trade and tax policies.
- Most strategists expect a drop in the two-year Treasury note’s yield due to the Federal Reserve’s interest-rate policy.
- They predict a decline of at least 0.5% from current levels within the next year.
- A JPMorgan Asset Management team led by David Kelly stated that "the Fed is still in cutting mode in 2025".
- Furthermore, the Federal Reserve signaling fewer rate cuts next year at its meeting this month could complicate the bond yields path.
- The median forecast amongst 12 strategists is for the yield on two-year notes to fall 50 basis points to 3.75% a year from now.
- Strategists predict the 10-year note’s yield, trading around 4.52% on Friday, will end 2025 at 4.25%.
- This is a decrease of 25 basis points compared to current levels.
- Trump’s upcoming tariff and tax policies could have an impact on the bond yields forecasts.
- For instance, higher tariffs and tighter immigration controls could lead to slower growth but higher inflation.
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