Société Générale: The Federal Reserve will cut interest rates twice next year, and there is still room for a decline in U.S. Treasury yields

According to Jin10, a report by Société Générale's interest rate strategists indicates that the upcoming economic data will continue to show the resilience of the U.S. economy, persistent inflation, and a slight deterioration in the labor market conditions. Nevertheless, they expect the Federal Reserve to cut interest rates after the December meeting and to lower rates two more times next year, predicting that by the end of 2026, the two-year Treasury yield will stabilize at 3.2% and the ten-year Treasury yield will decrease to 3.75%.