Citigroup Raises 10-Year U.S. Treasury Yield Target to 3.9% on June 29

According to Citigroup rate strategists on June 29, the bank raised its year-end target for 10-year U.S. Treasury yields to 3.9% from 3.75%. The adjustment follows a hawkish stance by the Federal Reserve at its June meeting.

Citigroup strategists maintained a mid-term bullish view on U.S. Treasuries, citing expectations that recent Middle East tensions will not drive core inflation pressures, and noting their bias toward labor market weakness rather than strength.