Lower US Treasury yield view persists despite biggest quarterly surge since 1994: Reuters poll

By Sarupya Ganguly BENGALURU, Oct 7 (Reuters) US Treasury yields are forecast to fall over coming months, according to fixed income strategists in a Reuters poll who clung to their long-held view despite the benchmark 10-year yield recording its biggest quarterly jump since 1994. However, conviction behind calls for lower yields, which strategists have been consistently wrong ​about over the past nine months, appears to be wavering. Some strategists are basing their views on the position ‌that financial markets have overdone pricing in a series of Federal Reserve interest rate hikes and policymakers may end up doing less. Meanwhile, government borrowing costs have hit multi-decade peaks in many developed economies in recent weeks on fears of inflation from the US-Israeli war with Iran and rising central bank policy rates. Heavy borrowing by tech giants to fund the AI buildout, coinciding with increased Treasury issuance, is only adding to rising yield pressure. FED OUTLOOK GUIDING ‌Y