Citigroup Raises Year-End Forecast for 10-Year U.S. Treasury Yield to 3.9%

Citigroup interest rate strategists raised their year-end forecast for the 10-year U.S. Treasury yield to 3.9%, up from a previous target of 3.75%. According to Odaily, the revision followed the Federal Reserve’s hawkish stance at its June meeting. The strategists said they are maintaining a medium-term bullish view on U.S. Treasuries, citing their expectation that the recent Middle East conflict will not transmit inflation pressures into core inflation. They also said they see the balance of risks tilted toward a weakening labor market rather than a strengthening one.