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In a forward-looking report, iCapital stated that it is expected that the 10-year U.S. Treasury bond yield will trade in the range of 4.0%-4.5% by 2026, and may touch the upper limit in the second half of the year. The report stated, "Although we still believe that the 10-year U.S. Treasury bond yield will fluctuate within this range at least at the beginning of 2026, it may fluctuate to 4.5% if the deficit outlook deteriorates." The report stated that this could put pressure on risk assets and capital market activities.
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