J.P.Morgan Brings Forward Fed Rate Hike Forecast, Raises Treasury Yield Targets -- Market Talk

0520 GMT - J.P.Morgan is pulling forward its expectations for a Federal Reserve rate hike to December this year from the second half of 2027, with policy rates on hold at 3.75%-4.00% thereafter, its strategists say in a note. In line with that, they raise their forecasts for the year-end level of 10- and 30-year Treasury yields. They now forecast the 10-year yield at 4.85% at the end of 2026 versus 4.70% previously. They also raise the 30-year target to 5.40% from 5.20%. The strategists see room for further steepening over the near term, driven by rising inflation expectations and a rising term premium. The 10-year Treasury yield is trading at 4.693% and the 30-year yield is at 5.236%, according to Tradeweb. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 03, 2026 01:20 ET (05:20 GMT)