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      HSBC Adjusts U.S. Treasury Yield Forecasts Amid Fed Outlook

      HSBC has revised its forecasts for U.S. Treasury yields, reflecting a more hawkish outlook from the Federal Reserve. The bank anticipates that while rates will remain unchanged in the near term, there is now a near-even chance of a 25 basis point increase in September.

      The updated projections include a forecast of 4.20% for 2-year Treasury yields and 4.65% for 10-year yields by the end of 2026. HSBC attributes these changes to ongoing fiscal deficits, which are expected to contribute to a steeper yield curve in the long term.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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