Global stock market turmoil leads funds to buy U.S. Treasuries; analysts say 10-year yield may drop to 3.5%

The risk aversion triggered by the global stock market sell-off has led analysts to discuss how low U.S. Treasury yields might fall. TD Securities predicts that by the end of 2026, the yield on the 10-year U.S. Treasury will drop to 3.50%; DBS Bank estimates that if the stock market continues to decline, this benchmark yield could fall to a minimum of 3.8%, currently around 4.07%. The turbulence related to overvalued tech stocks has put pressure on global stock indices, making the outlook for U.S. Treasuries, the world's safest investment, increasingly attractive. Wall Street executives such as Ted Pick from Morgan Stanley and David Solomon from Goldman Sachs have warned that stock prices may decline further, highlighting the potential for a new uptrend in the $73 trillion bond market. (Bloomberg)