Five key activities that typically lead to a decline in the 10-year yield

Here are the top reasons for a decline in the 10-year U.S. Treasury yield:

1. Federal Reserve Policy Easing

   • Rate cuts or dovish signals lower expected future interest rates, pulling long-term yields down.

2. Economic Slowdown or Recession Fears

   • Investors seek safety in Treasuries, driving up prices and lowering yields.

3. Falling Inflation Expectations

   • Lower anticipated inflation reduces the compensation investors demand for holding long-term bonds.

4. Geopolitical or Financial Market Stress

   • Crises (e.g., wars, pandemics, banking turmoil) prompt a flight to safe assets like U.S. Treasuries.

5. Increased Demand from Global Investors

   • Strong foreign or institutional buying (due to relative yield advantage or risk aversion) pushes yields lower.

These forces often interact—e.g., a slowing economy leads to Fed rate cuts and lower inflation, reinforcing the downward pressure on yields.

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Chad Behnken

Luxury Real Estate Advisor

Engel & Völkers Pikes Peak

chad.behnken@engelvoelkers.com

www.chadbehnkenev.com

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