SEB: The results of the US election mean that US Treasury yields will have greater room for upward movement in the next 1-2 years

Jussi Hiranin, chief strategist at Swedish bank SEB, said in a report that SEB Research had been expecting Treasury yields to rise by 2025 regardless of the outcome of the U.S. election. However, he said the election result meant that Treasury yields would have more room to rise in the next 1-2 years. He noted that this was because the Fed would be more cautious in cutting rates than previously expected to cope with the impact of higher inflation and larger budget deficits. "Larger deficits will put more upward pressure on long-term yields in particular," he said. This will be reflected in a further increase in the long-term risk premium. (Jinshi)