HSBC HIKES TREASURY YIELD FORECASTS HSBC raised its U.S. Treasury yield forecasts as the Fed outlook turns more hawkish. The bank still expects rates to remain unchanged, but now sees a near-even chance of a 25bp September hike. HSBC forecasts 2-year yields at 4.20% and 10-year yields at 4.65% by end-2026. Persistent fiscal deficits are expected to drive a steeper yield curve longer term.(*Walter Bloomberg)