Wall Street: Predicts that the yield on 2-year US Treasury bonds will drop by 50 basis points next year

Despite the imminent threat of President-elect Trump's trade and tax policies to the bond market, Wall Street still gets inspiration from the Federal Reserve, predicting that US short-term government bond yields will fall by 2025. The strategists' predictions are mostly consistent, believing that the yield on 2-year government bonds, which is more sensitive to Fed interest rate policy, will decline. They believe that starting from now, after 12 months, the yield will drop at least 50 basis points from its current level. The median prediction of 12 strategists is that the yield on a two-year U.S. Treasury note will drop about 50 basis points in one year to around 3.75%. For longer-term ten-year U.S. Treasuries, strategists believe last Friday's yield was about 4.52%, and it would reach around 4.25% by end-2025 - approximately a decrease of about twenty-five basis points compared with current levels.