US 10-year treasury yield could fall to 1.75% due to trade meltdown: Report

Federal Reserve policy makers will meet Tuesday and Wednesday to set rates, with many economics and bond traders ratcheting up bets they will ease this year to boost the economy

Treasury 10-year yields may decline to 1.75 per cent by year-end if the US-China trade war goes full throttle, according to Western Asset Management LLC.

Yields may keep falling even though they have already tumbled to about 2.10 per cent from a seven-year high of 3.26% set in October, according to Mark Lindbloom, a portfolio manager at the firm that oversees $436 billion. The trigger: a cocktail of slowing inflation, cooling global growth and a worsening in US-China trade tensions.

“There’s nothing special about 2 per cent for 10-year notes,” Lindbloom, who co-manages a fund that beat 97 per cent of its