Societe Generale: The Federal Reserve will continue to cut interest rates next year, and US Treasury yields still have room to fall.

According to a report by Odaily Planet Daily, Societe Generale interest rate strategists stated that upcoming economic data should continue to show the resilience of the US economy, sticky inflation, and a slight deterioration in labor market conditions; despite this, US Treasury yields still have room to decline by the end of 2026. These strategists stated, "Following the rate cut at the December meeting, we expect the Fed to cut rates twice more next year." They predict that by the end of 2026, the two-year Treasury yield will steadily decline to 3.20%, and the 10-year Treasury yield will decline to 3.75%. (Jinshi)