Federal Reserve's Anticipated Rate Cuts and Inflation Impact on U.S. Treasury Yields

According to BlockBeats, German Central Cooperative Bank analyst Christian Lenk has indicated in a report that the Federal Reserve is expected to reduce interest rates by 25 basis points in December, followed by a more cautious approach. Lenk forecasts that the Federal Reserve will implement two additional rate cuts next year, in March and June, each by 25 basis points. Despite the anticipated rate cuts, the German Central Cooperative Bank expects inflation to drive up the yield on 10-year U.S. Treasury bonds. Factors such as temporary tariff impacts and significant government deficits are projected to contribute to rising inflation in the coming quarters. While the long end of the yield curve may continue to rise, the ultimate yield is not expected to deviate significantly from current levels. The yield on 10-year U.S. Treasury bonds is predicted to increase to 4.50% within the next three months, up from the current 4.103%, and to reach 4.60% within six months.