U.S. Treasury Yields Expected to Decline by 2026, Analysts Say

According to Odaily, interest rate strategists at Société Générale have indicated in a report that upcoming economic data is likely to continue demonstrating the resilience of the U.S. economy, persistent inflation, and a slight deterioration in labor market conditions. Despite these factors, there remains potential for a decline in U.S. Treasury yields by the end of 2026. The strategists stated, "Following a rate cut at the December meeting, we anticipate the Federal Reserve will implement two additional rate cuts next year." They project that by the end of 2026, the yield on two-year Treasury notes will gradually decrease to 3.20%, while the yield on ten-year Treasury notes will fall to 3.75%.