UBS has abandoned its near-term bullish stance on the front end of the U.S. Treasury curve after a long position in 2-year notes was stopped out earlier this week, according to a report cited by Odaily. Strategist Phoebe White said the bank no longer holds a constructive short-term view on short-dated government bonds. UBS also raised its year-end Treasury yield targets. Its forecast for the 10-year U.S. Treasury yield was lifted from 4.35% to 4.80%, while the 2-year target was revised from 3.95% to 4.50%. The report said those levels are broadly in line with forward rates. Tradeweb data showed the 2-year Treasury yield up 2 basis points at 4.568%. Earlier, it touched 4.596%, the highest level since July 2024. The move signals a notable shift in the bank’s rates outlook over the near term.
UBS has dropped its near-term bullish view on short-dated U.S. Treasuries after a long position in 2-year notes was stopped out earlier this week, according to Odaily, citing a report by UBS strategist Phoebe White.
White said UBS had exited the 2-year Treasury long and no longer held a near-term bullish bias on the front end of the curve.
UBS also raised its year-end Treasury yield targets. The bank lifted its 10-year U.S. Treasury yield forecast to 4.80% from 4.35% and revised its 2-year target to 4.50% from 3.95%. The report said the updated targets are broadly in line with forward rates.
Tradeweb data showed the 2-year Treasury yield rising 2 basis points to 4.568%. It had earlier reached 4.596%, its highest level since July 2024.
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