Wall Street is taking its cues from the Federal Reserve, forecasting short-term US Treasury yields to fall in 2025 despite the looming threat of President-elect Donald Trump’s trade and tax policies on the bond market.
Strategists are mostly aligned in their predictions and see a drop in the two-year Treasury note’s yield, which is more sensitive to the Fed’s interest-rate policy. They see a decline of at least half a percentage point from the current level 12 months from now.