JPMorgan Chase: 10-year US Treasury yield too low, underestimating the risk of further Fed rate hikes.

JPMorgan strategist said that the current yield on the US 10-year Treasury bond is too low, and the June employment data released on Thursday "may lower the market's bets on the Fed further raising interest rates." In a report on June 26 led by strategist Jay Barry, JPMorgan's team pointed out that the yield on the US 10-year Treasury bond is "currently 27 basis points lower than the fair value implied by the model, the largest deviation since March 2023, which means that the mid-term risks are skewed towards higher yields." The yield remained at around 4.37% on Monday, close to the low point of the range since mid-May.