Deutsche Bank Raises Year-End Forecasts for 2-Year and 10-Year U.S. Treasury Yields

Deutsche Bank interest-rate strategists have revised up their year-end forecasts for U.S. Treasury yields, citing an updated outlook for Federal Reserve policy. According to ChainCatcher, citing a Jin10 report, Deutsche Bank now expects the 2-year U.S. Treasury yield to reach 4.3% by year-end, up 35 basis points from its prior forecast. The bank also raised its year-end forecast for the 10-year U.S. Treasury yield to 4.8%, an increase of 10 basis points from its previous estimate. The revisions reflect Deutsche Bank economists’ latest view that the Federal Reserve will raise interest rates twice this year, by 25 basis points each time.