Mizuho Securities’ interest rate strategist, Evelyn Gomez-Liechti, suggests that the U.S. Treasury yield curve may continue to steepen. She anticipates an additional 15-20 basis points' steepening as bond issuances regain appeal.
Another factor contributing to this trend is the high inflation premium on long-term Treasury bonds. Driven by what analysts call the "Trump trade" and strong economic data, investors are likely to sell long-term bonds before the end of the year. This could result in the 10-year U.S. Treasury yield rising to 4.60%.
According to Tradeweb data, the 10-year U.S. Treasury yield recently decreased by 1 basis point to 4.422%.
