{"id":121873,"date":"2026-08-28T12:51:16","date_gmt":"2026-08-28T12:51:16","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/121873\/"},"modified":"2026-08-28T12:51:16","modified_gmt":"2026-08-28T12:51:16","slug":"ubs-says-bond-market-relief-from-falling-yields-will-not-offset-deeper-structural-pressures","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/121873\/","title":{"rendered":"UBS says bond market relief from falling yields will not offset deeper structural pressures"},"content":{"rendered":"

\"UBS<\/a> UBS says bond market relief from falling yields will not offset deeper structural pressures Proactive uses images sourced from Shutterstock <\/p>\n

UBS has said recent falls in bond yields and oil prices offer only temporary relief, with structural forces likely to keep long-term borrowing costs high, as it raised its forecast for long-term US Treasury yields. <\/p>\n

The bank now expects the 30-year Treasury yield to reach 4.9% by March 2027, up from a previous forecast of 4.5%. <\/p>\n

The Swiss investment bank said Federal Reserve uncertainty under Chair Kevin Warsh was lifting risk premiums, as the central bank has placed less emphasis on forward guidance. <\/p>\n

The bank also pointed to large US technology companies issuing debt to finance artificial intelligence investment, creating competition for investor capital. <\/p>\n

Persistently large budget deficits and rising debt levels across developed economies were also cited as contributing to structurally higher yields<\/a>. <\/p>\n

UBS said it continued to favour high-quality government and corporate bonds in short to intermediate maturities, while remaining cautious on long-duration debt. <\/p>\n

Separately, UBS highlighted accelerating annual bank lending growth across the eurozone, with loans to non-financial companies growing 4.4% year-on-year in July, up from 4.0% in June. <\/p>\n

The bank rated European financial stocks as attractive, noting the sector trades at around 11 times 2027 earnings with a dividend yield of about 5%. <\/p>\n

UBS also raised its outlook for Japanese interest rates, forecasting the Bank of Japan will lift rates by 25 basis points in September. <\/p>\n","protected":false},"excerpt":{"rendered":"UBS says bond market relief from falling yields will not offset deeper structural pressures Proactive uses images sourced…\n","protected":false},"author":2,"featured_media":121874,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[59444,12784,223,4424],"class_list":["post-121873","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-shutterstock-ubs","tag-treasury","tag-ubs","tag-us-treasury"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117173229175854292","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/121873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=121873"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/121873\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/121874"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=121873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=121873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=121873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}