Citi Strategist Predicts U.S. 10-Year Treasury Yield May Return to 5%

According to Citi rates strategist John Davies, the U.S. 10-year Treasury yield may return to around 5%, a level last seen in October 2023. Davies noted current market conditions resemble the debt selloff period from July to October 2023, with concerns over Bank of Japan policy accommodation and potential transmission effects to U.S. Treasury markets adding pressure to long-term yields.
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