US Treasury yields are expected to decline as the incoming Trump administration, led by Treasury secretary nominee Scott Bessent, navigates policy constraints and aims to avoid inflationary pressures. The Federal Reserve is anticipated to continue cutting interest rates, with a forecast of 125 basis points by the end of 2025, while the US dollar is viewed as overvalued, prompting strategies to reduce exposure. Investors are advised to lock in elevated yields on quality bonds as cash returns diminish.
