Marco Meijer from Mediolanum International Funds anticipates a decline in the 10-year U.S. Treasury yield as the Federal Reserve is expected to lower interest rates. Meijer, a deputy head in the fixed income department, predicts that the yield could drop to 4% in the coming months, as uncertainties surrounding U.S. growth prospects persist due to new policies.
He also suggests that progress in reducing the budget deficit could further support this yield decline. Mediolanum forecasts that the Federal Reserve will implement three rate cuts this year, each by 25 basis points. However, Meijer acknowledges the possibility of fewer rate cuts than anticipated.
According to data from the London Stock Exchange, the 10-year U.S. Treasury yield recently increased by 1 basis point, reaching 4.430%.
