HSBC Raises 10-Year Treasury Yield Target Amid Fed Hawkishness

HSBC has raised its year-end forecast for 10-year U.S. Treasury yields to 3.5% from 3% due to the Federal Reserve's expectations of continued economic expansion and the need for interest rate hikes to combat inflation. Despite the Fed's hawkish stance, Capital Economics believes that global central banks are closer to cutting rates than markets currently anticipate, with 21 out of the world's 30 major central banks expected to lower interest rates by next year.