The U.S. bond market is staging a comeback as big investors see yields returning to where they were before the economic downturn hit.
While rising consumer prices could affect the 10-year benchmark it would still remain at pre-crisis levels, according to Deutsche Bank analysts.
The 10-year note’s yield will end the year at 3.75%, after first falling to 3.5% in the second quarter, according to the bank. The median estimate of 64 economists surveyed by Bloomberg is 3.93 percent at year-end, according to this Bloomberg story.
Some investors, however, caution that the end of the Federal Reserve’s $600 billion Treasury buying program this summer may send yields back down as the economy slows.