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 for 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 adjusts the "Beautiful Bill" proposed by the House to further cut spending, it could alleviate market concerns about the expanding fiscal deficit. However, UBS also believes that in the coming months, the yield on 10-year Treasuries may struggle to fall below 4%.