According to BlockBeats, UBS interest rate strategists stated in a recent report that they remain bullish on 10-year U.S. Treasuries due to ongoing risks to economic growth. 'We believe the market is underestimating the risks of an economic slowdown, and the relatively mild U.S. CPI data in May and June will also support the performance of 10-year Treasuries,' the strategists noted. They pointed out that although household inflation expectations have risen, this has not yet translated into significant wage pressure.
Additionally, they mentioned that if the U.S. Senate makes adjustments to the 'Beautiful Act' proposed by the House of Representatives to further cut spending, it could also alleviate market concerns about the widening fiscal deficit. However, UBS also believes that in the coming months, it may be difficult for the 10-year Treasury yield to fall below 4%.