BNP Paribas: Fed to Continue Cutting Interest Rates Next Year, Room for Further Decline in US Bond Yields

BlockBeats News, December 1st, a strategist at Societe Generale said in a report that the upcoming economic data should continue to show the resilience of the U.S. economy, sticky inflation, and a slight deterioration in the labor market conditions; nevertheless, by the end of 2026, there is still room for a decline in U.S. Treasury yields.

The strategists said: "After the rate cut at the December meeting, we expect the Fed to cut rates twice again next year." They expect that by the end of 2026, the two-year Treasury yield will steadily decrease to 3.20%, and the ten-year Treasury yield will fall to 3.75% (FX678).