HSBC raises its expectations for ABD Treasury bond delivery returns. 📈🇺🇸
👉 With the Fed’s outlook moving to a more hawkish stance, HSBC revised its bond yield forecasts.
🏦 The bank still expects interest rates to remain unchanged. However, it assesses the likelihood of a 25-basis-point rate hike in September at nearly 50%.
📊 HSBC’s year-end 2026 forecasts:
• 2-year bond yield: 4.20%
• 10-year bond yield: 4.65%
In addition, it is expected that ongoing budget deficits could create a steeper yield curve in the long run.
So do you think the Fed will raise rates in September? 👇
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