Capital Economics: If the rebound in the US stock market does not continue, yields may reverse

John Higgins, an analyst at Capital Economics, stated that following the release of higher-than-expected inflation data, U.S. Treasury yields may face further pressure in the short term. The 2-year U.S. Treasury yield has risen more than the 10-year yield, reflecting an increased market expectation that the Federal Reserve's policy will become more tightening.

Capital Economics expects that if the recent stock market rebound cannot be sustained, the trend in yields may reverse.