Capital Economics: The recent sell-off in U.S. Treasuries may have been excessive; expects the 2027 year-end 10-year yield to fall to 4.25%
Capital Economics believes that the recent rise in U.S. Treasury yields mainly reflects rising oil prices and a strong U.S. economy, rather than AI debt issuance or fiscal concerns. The institution expects tightening to be less forceful than the market anticipates, and the 10-year yield will fall to 2027 before year-end. 4.25%。