Deutsche Bank raises its forecast for short-term US Treasury yields

The report pointed out that this revision has raised the bank’s short-term US Treasury yield forecast — it is now expected that the 2-year US Treasury yield will reach 4.3% by the end of the year (an increase of 35 basis points compared to the previous forecast). Given the bank assumes interest rate hikes will be gradually withdrawn by mid-2028, the impact on long-term bond yields is relatively limited.