Societe Generale: The Federal Reserve's continued interest rate cuts will lead to a decline in short-term interest rates, while tariffs and fiscal deficits will push up long-term interest rates.

Odaily Planet Daily News According to Societe Generale, by the end of 2025, the yield on 10-year US Treasury bonds will rise to 4.5%, while the yield on 2-year US Treasury bonds will drop to 3.5%. The reason is that the Fed will continue to drop short-term Intrerest Rate by cutting interest rates, but it will also stimulate the economy and increase the fiscal deficit, prompting an increase in demand for long-term government bonds, leading to a rise in long-term yields. In addition, Trump’s tariff plan may raise inflation expectations, and the US government is expected to increase the issuance of government bonds to address the fiscal deficit, both of which will push up yields. (Golden Finance)