Nordea Bank Strategist Predicts Rising U.S. Treasury Yields Through 2025

According to Odaily, Nordea Bank's Chief Strategist, Jussi Hiljanen, has projected an increase in U.S. Treasury yields through 2025, regardless of the outcome of the U.S. elections. Hiljanen's report suggests that the election results could lead to a greater upward trajectory for Treasury yields over the next one to two years. This expectation is based on the Federal Reserve's anticipated cautious approach to interest rate cuts, which is seen as a response to higher inflation and a larger budget deficit. Hiljanen emphasized that the larger budget deficit is likely to exert additional upward pressure on long-term yields. This pressure is expected to manifest in a further increase in long-term risk premiums. The strategist's analysis indicates that the fiscal and monetary policy landscape in the United States will play a crucial role in shaping the trajectory of Treasury yields in the coming years. The cautious stance of the Federal Reserve, in particular, is highlighted as a key factor influencing these financial dynamics.