Analysts Warn of Tariff Lag Effect, Long-Term U.S. Bond Yields Prone to Rise, Hard to Fall

Odaily According to the latest report from BayernLB analysts, inflation factors may keep U.S. long-term Treasury yields elevated in 2026. The report points out that the situation in 2025 is clearly better than expected: due to the U.S. tariff policy's boosting effect on inflation being milder than anticipated, positive surprises have overshadowed negative factors. However, analysts believe this lag effect will manifest in 2026, at which point the surprise factor in inflation data may no longer be as significant. (Jin10)