Societe Generale: The Federal Reserve's continued interest rate cuts will lead to a decline in short-term interest rates, while tariffs and fiscal deficits will push up long-term interest rates.

BlockBeats news, on November 30, Societe Generale predicted that by the end of 2025, the yield on 10-year U.S. Treasury bonds will rise to 4.5%, while the yield on 2-year U.S. Treasury bonds will drop to 3.5%. The reason is that the Fed will continue to drop short-term Interest Rate by stimulating the economy and increasing the fiscal deficit, causing an increase in the demand for long-term government bonds, leading to a rise in long-term yields. In addition, Trump’s tariff plan may push up inflation expectations, and the U.S. government is expected to increase the issuance of government bonds to cope with the fiscal deficit, which will also push up yields. (FX678)