US 10-year yields seen above 3% - UOB banks

FX Strategists at UOB Group assessed the prospects for yields of the key US 10-year note.

Key Quotes

“Based on firmer inflation and deteriorating fiscal outlook for the US, US Treasury yields could trend higher and prove sticky on the downside”.

“This comes at a time when the US Treasury is expected to borrow more as the FED follows its course on Balance Sheet Reduction”.

“In our 2Q 2018 Quarterly publication, we have updated our 10Y US Treasury yield forecast to 2.80% in 2Q18, 3.00% in 3Q18, 3.20% in 4Q18 and 3.25% in 1Q19”.