US GOVERNMENT BONDS 10 YR YELD GROWING

Bond markets have experienced a strong movement this week with the U.S. Federal Reserve saying it expects higher economic growth and inflation in the United States this year, although it repeated its pledge to keep its target interest rate near zero. Yields on U.S. 10-year have been rising for the past seven weeks on growth expectations, spiked to their highest since January 2020 at 1.754% on Thursday. They eased to 1.6838% on Friday.

The SEB analysts said they expected the U.S. 10-year Treasury yield to hit 2% this year