DBS Bank predicts that if the stock market continues to decline, the yield on the 10-year U.S. Treasury bond will fall from the current level of 4.07% to 3.8%. TD Securities is even more optimistic, expecting this benchmark yield to reach 3.50% by the end of next year.
Global stock markets are experiencing a sell-off wave triggered by fears of a tech stock valuation bubble, with significant amounts of risk-averse capital flowing into the U.S. Treasury market in search of a safe haven.
DBS Bank’s latest forecast indicates that if the stock market continues to decline, the yield on the 10-year U.S. Treasury bond could fall as low as 3.8%, a substantial drop from the current level of approximately 4.07%. TD Securities predicts that this benchmark yield will decrease to 3.50% by the end of 2026.
Previously, Wall Street giants issued warnings, with executives such as Ted Pick of Morgan Stanley and David Solomon of Goldman Sachs cautioning…
