UBS on Bond Market - FJElite
30-year US Treasury yields have broken out to their highest levels since 2007, prompting intervention from the Treasury.
We see four fundamental drivers weighing on long-end risk premiums: Fed uncertainty, Al-related debt issuance, fiscal pressures, and a more price-sensitive investor base.
Long-end yields should stabilize from here, even if we see limited catalysts for a sharp reversal lower; we maintain a preference for short- to intermediate-tenor Treasuries and markets outside the US for duration exposure.
