DBS senior rates strategist EugeneLeow put 4.8% on the 10-year U.S. Treasury yield as a near-term technical objective.
He tied Treasury demand to unease about artificial intelligence, economic growth and political developments in Europe and the United States. Leow included the U.S. midterm elections among the political factors he cited.
At current yields, Leow said Treasury securities may serve as a portfolio hedge. His comments connect that view to both the yields available and demand for assets seen as a safe haven.
The next scheduled U.S. policy and inflation dates are approaching. The Fed is set to announce its next rate decision at 2 p.m. ET Oct. 28. The Bureau of Labor Statistics (BLS) has scheduled its next consumer price index (CPI) report for 8:30 a.m. ET Nov. 10.
