The term premium has surged to decade-high levels in recent weeks, driving increased selling of U.S. Treasuries and pushing yields to their highest point in 24 years. Analysts attribute the rise to persistent market trends, macroeconomic uncertainty, and increased bond supply.
Danske Bank strategists predict U.S. Treasury yields could rise to 6% as the dollar strengthens amid expectations of hawkish Federal Reserve policy. The dollar index shows strong momentum, though upside potential may be limited.