UBS: The 10-year U.S. Treasury yield has fallen below expectations, but the optimal entry point may not have emerged yet.

Odaily Planet Daily reported that Reinout De Bock, the head of European interest rate strategy at UBS, stated in a report that the yield on the 10-year U.S. Treasury bond has fallen below UBS’s forecast of 4.25% for 2025, but an entry point for buyers is expected to emerge later. The strategist noted, "We believe that weaker data and the high uncertainty surrounding recent trade policies have limited the risk of a sell-off." However, "Tariffs or employment data exceeding market consensus may provide an attractive entry point for initiating long positions."

According to data from Tradeweb, the yield on the 10-year U.S. Treasury bond dropped by 1.4 basis points to 4.180%. UBS believes that there is further upside potential for the two-year U.S. Treasury bond compared to its forecast of 3.65%. Based on Tradeweb data, the yield on the two-year U.S. Treasury bond is currently reported at 3.93%, down 5 basis points for the day. (Jin Shi)