Mizuho Securities said U.S. Treasury selling may slow as higher yields attract investor demand. According to Sina Finance, Hidehiro Joke, a senior bond strategist at Mizuho Securities in Tokyo, said expectations for Federal Reserve rate hikes are increasingly being reflected in the short end of the yield curve, helping push up the 10-year yield.
Joke said the 10-year yield does not appear likely to rise further toward 5.25% or 5.5%, because carry should be enough to offset the slight increase in financing costs. He also said inflation is expected to slow as the impact of tariffs fades, and he doubts the Federal Reserve will keep rates high without cutting them for as long as the market currently expects.