0605 GMT - A fall in U.S. Treasury yields might be bottoming out soon, says Capital Economics' Jonas Goltermann in a note. Yields fell in recent days in response to renewed U.S.-China tensions but "unless the trade war returns in earnest, we doubt Treasury yields will fall much further in the near term," the deputy chief markets economist says. The main explanation for the current relatively low Treasury yields is that, notwithstanding a lower perceived risk of recession today, "the outlook for Fed policy has shifted in favor of lower rates over recent months," Goltermann says. Indeed, in a speech on Tuesday, Fed Chair Jerome Powell kept the Fed on track to lower interest rates again. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

October 15, 2025 02:06 ET (06:06 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.