UBS Abandons Earlier Bullish Stance on US Treasuries, Raises Year-End Yield Target

UBS strategist Phoebe White stated in a report that UBS was stopped out of its long position in 2-year US Treasuries earlier this week and has abandoned its recent bullish bias on short-dated bonds. UBS also raised its year-end target for the 10-year US Treasury yield from 4.35% to 4.80%, and adjusted its 2-year target from 3.95% to 4.50%, roughly in line with forward rates. According to Tradeweb data, the 2-year US Treasury yield rose by 2 basis points to 4.568%, having previously touched 4.596%, the highest since July 2024.