The trend of U.S. Treasury yields depends on budget sustainability and investor behavior

Swissquote Bank strategist Ipek Ozkardeskaya stated in a report that the movement of U.S. Treasury yields will depend on two factors. The first factor is the fiscal choices made by the U.S.: whether the budget is sustainable and if there are any long-term plans to control debt. The other factor is the actions of global investors: whether global investors are still willing to finance the U.S. deficit, especially as geopolitical relations deteriorate, enthusiasm for the dollar wanes, and confidence in U.S. Treasuries as a safe-haven asset declines, all of which also weaken market confidence.