DBS Bank: 10-year US Treasury yield expected to fall back to 4.8%

Eugene Leow, Senior Rates Strategist at DBS Bank in Singapore, said that with demand for safe-haven assets rising, the 10-year U.S. Treasury yield is expected to fall back to 4.8%. Caution will remain a core consideration for investors. Market doubts about AI, risks of an economic slowdown, and political uncertainty in Europe and the U.S. (the situation in Europe, the U.S. midterm elections) mean that safe-haven demand will persist for some time. At current absolute yield levels, U.S. Treasuries are suitable as a safe-haven hedging tool. From a trading perspective, 4.8% is a logical short-term technical target.