Three-quarters of strategists, 15 of 20, who answered an extra question said the 2-year Treasury yield was unlikely to revisit its cycle peak over the coming three months.
Only two of 27 respondents had the 2-year yield trading higher than the current level at the end of August.
The benchmark 10-year note yield , meanwhile, was forecast to decline by much less, about 25 basis points over the coming six months.
An inverted yield curve has historically been a reliable indicator of an oncoming recession but so far, having been inverted for almost a year, that has not happened.
"Persistence of this configuration — continued growth along with above target inflation — will keep mild upward pressure on two-year and 10-year yields."
Persons:
Jerome Powell, Bas Van Geffen, Robert Tipp, Sarupya Ganguly, Indradip Ghosh, Shaloo, Emelia Sithole
Organizations:
Reuters, Silicon Valley Bank, Rabobank, Fed, Thomson
Locations:
BENGALURU, Silicon