Analysis:AI Bond issuance has a limited impact on U.S. Treasury yields, 10-year yield 2027 could fall to by the end of the year 4.25%
Capital Economics believes that the recent rise in U.S. Treasury yields mainly reflects rising oil prices, a strong U.S. economy, and changes in interest-rate expectations, while the impact of AI bond issuance and fiscal concerns is limited. It expects the 10-year yield to fall to 2027 by the end of the year 4.25%。