0647 GMT - Two-year U.S. Treasurys have room to rally, says Natixis's Benoit Gerard. Natixis forecasts the 2-year Treasury yield to reach 3.85% at the end of the year. In contrast, the 10-year Treasury yield is expected to hover around Natixis's year-end target of 4.50%, with some volatility, the rates strategist says. Natixis's forecast assumes that the market does not anticipate that the Federal Reserve's next move is a hike nor anticipates a recession. "Contradicting forces around the supply and demand dynamics should keep a decent support for term premium in U.S. Treasurys curve while preventing the eruption predicted by bond vigilantes," he says. The 10-year Treasury yield last trades at 4.157%, down 2.3 basis points, while the 2-year Treasury yield falls 3 bps to 3.951%, according to Tradeweb. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 04, 2025 01:47 ET (06:47 GMT)
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