UBS Report: The rise in U.S. Treasury yields before this round of interest rate cuts is more pronounced than in previous cycles

ChainCatcher news, UBS strategist Emmanouil Karimalis pointed out in a report that the recent trends in U.S. Treasury bonds and the yield curve seem more pronounced than the average and median of comparable historical periods, ahead of the Federal Reserve's expected rate cut on September 18.

"The bond market typically rebounds at the time of a Fed rate cut, but compared to past cycles, the recent rebound has been larger; the increase in the 10-year U.S. Treasury bond over the past month is the largest in recent history," he stated, adding that the current market pricing seems to be more excessive compared to the last three Fed rate cut cycles.

According to Tradeweb data, the yield on the 10-year U.S. Treasury bond is currently 3.717%, having decreased by 23 basis points over the past month. (Jin Shi)