Recently, the interest rate strategy team at American Bank has made a new assessment of the outlook for U.S. Treasury yields. Influenced by the latest economic data, they believe that the Federal Reserve may adjust its risk assessment.

The strategy team has lowered the year-end expectation for the 2-year Treasury yield from 3.75% to 3.5%, while also predicting that the 10-year Treasury yield will reach 4.25% by the end of the year, a decrease from the previous expectation of 4.5%.

Team leader Mark Cabana pointed out in the latest report that recent U.S. economic data has had a significant impact on market pricing and has also altered their views on the trend of U.S. Intrerest Rate. Their considerations include the risk that the independence of the Federal Reserve may be weakened, which could lead to an increased tolerance for inflation, as well as more central bank members leaning towards supporting a low Intrerest Rate policy.

This expected adjustment reflects the market's concerns about the state of the U.S. economy and the direction of monetary policy. As economic data continues to change, investors and analysts will closely monitor the Federal Reserve's policy stance and its potential impact on financial markets.

The yield on U.S. Treasury bonds, as an important indicator of the global financial market, not only affects the domestic economy of the United States but also triggers a chain reaction in the global financial market. Therefore, this forecast by the Bank of America strategy team has attracted widespread attention from the market, and investors are actively adjusting their investment strategies in response to potential market changes.