Nordstan Bank: The outcome of the U.S. presidential election means that there will be greater upward potential for U.S. bond yields in the next 1-2 years.

On November 8, Jin10 Data reported that Youxi Hiliya, Chief Strategist of Nordic Swann Bank, said in a report that regardless of the outcome of the US election, the Nordic Swann Bank's research department has always expected that US Treasury yields will rise until 2025. However, he said that the election results mean that US Treasury yields will have greater upward space in the next 1-2 years. He pointed out that this is because the Fed's rate cut will be more cautious than previously expected to cope with higher inflation and a larger budget deficit. He said: "A larger deficit will bring more upward pressure on long-term yields." This will be reflected in the further increase of long-term risk premium.