Deutsche Bank Raises 2-Year Treasury Yield Forecast to 4.3% After FOMC Meeting

According to Deutsche Bank economists Matthew Raskin, Steven Zang, and Andrew Fu, the bank raised its forecasts for short-term U.S. Treasury yields on Tuesday following the Federal Open Market Committee meeting. Deutsche Bank now expects the Federal Reserve to raise rates by 25 basis points each in September and December this year, bringing the federal funds rate to 4.1%. The 2-year Treasury yield is forecast to reach 4.3% by year-end, up 35 basis points from the bank's prior forecast.
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