According to ChainCatcher, reported by JIN10 Data, UBS interest rate strategists stated in their latest report that due to ongoing economic growth risks, the bank continues to be bullish on the 10-year U.S. Treasury bonds.

"We believe the market has underestimated the risk of an economic slowdown, and the relatively moderate U.S. CPI data in May and June will also support the performance of the 10-year U.S. Treasury bonds," the strategists pointed out. Although household inflation expectations indicators have risen, they have not yet translated into significant wage pressure.

Additionally, they mentioned that if the U.S. Senate adjusts the "Build Back Better" bill proposed by the House of Representatives to further reduce spending, it could help ease market concerns about the widening fiscal deficit.

However, UBS also believes that in the coming months, the yield on the 10-year U.S. Treasury bonds may find it difficult to fall below 4%.

UBS: Continuing to Be Bullish on 10-Year U.S. Treasury Bonds