UBS Abandons Near-Term Bullish View on Short-Term U.S. Treasuries

According to Jin10, UBS strategist Phoebe White said in a report that UBS was stopped out of its long position in 2-year U.S. Treasuries earlier this week and has abandoned its near-term bullish bias on front-end bonds. UBS also raised its year-end target for the 10-year U.S. Treasury yield to 4.80% from 4.35% and lifted its 2-year target to 4.50% from 3.95%, roughly in line with forward rates. Tradeweb data showed the 2-year U.S. Treasury yield rose 2 basis points to 4.568% after touching 4.596%, its highest level since July 2024.