Investing.com –Â While US Treasury yields are expected to fall over the rest of 2025, the yield curve could nonetheless continue to steepen, according to analysts at Capital Economics.
Benchmark 10-year US government bond yields recently touched multi-month highs as investors fretted over the outlook for potential Federal Reserve interest rate cuts this year.
After slashing borrowing costs by a full percentage point in 2024, policymakers have signaled that they will take a careful approach to future drawdowns, especially as uncertainty looms over the policies of the incoming administration of President-elect Donald Trump. Economists have warned that Trump’s plans, particularly his threat to impose sweeping import tariffs on allies and adversaries alike, could place renewed upward pressure on inflation — and subsequently bolster the case for the Fed to roll out more rate cuts slowly, if at all.
But these worries were somewhat…
