Wall Street Doubts the Prospects for U.S. Yields Above 2% in 2020
- Societe Generale predicts 10-year yield will drop to 1.20%
- Goldman is most bearish, with call of 2.25% for end of 2020
This article is for subscribers only.
The biggest dealers of U.S. government securities have been dropping their forecasts for Treasury yields over the next year, and for the most part, their targets for where the 10-year benchmark will go are landing below 2%.
Societe Generale, the most bullish so far, sees the 10-year note’s yield falling to 1.20% from from its current level of around 1.82%, while BMO Capital Markets, HSBC Holdings Plc and TD Securities also project declines. Among major banks that have released 2020 outlooks, Goldman Sachs Group Inc. has the highest yield prediction, but even that is for the benchmark to rise only to 2.25%, while JPMorgan Chase & Co. is the next most bearish with a call of 2.05%.