DBS Strategist Sees U.S. 10-Year Yield Moving Toward 4.8%

DBS senior rates strategist EugeneLeow expects the 10-year U.S. Treasury yield to move toward 4.8%, with demand for safer assets helping keep investor caution in focus.

Leow described 4.8% as a reasonable short-term technical target. He said worries about artificial intelligence, the risk of slower economic growth and political uncertainty in Europe and the United States could keep safe-haven demand elevated for some time. The U.S. midterm elections were among the political concerns he cited.

At current absolute yield levels, Leow views Treasurys as suitable for use as a safe-haven hedge.