[Analysis: The main reason for U.S. Treasury sell-off is not AI-related bond issuance, 10-year yield may drop to 4.25% by the end of next year] Odaily Planet Daily reports that Capital Economics believes the sell-off in U.S. Treasuries is primarily driven by changes in market expectations for near-term interest rates. Currently, the 10-year U.S. Treasury yield is nearing the peak seen in June 2007. Economist James Reilly pointed out that this trend is more reflective of rising oil prices and the strong U.S. economy, rather than being driven by AI-related bond issuance or fiscal concerns. Reilly predicts that as the Federal Reserve's tightening measures fall short of current investor expectations, the 10-year U.S. Treasury yield will "drop significantly to 4.25%" by the end of 2027. He believes that although AI-related bond issuance will continue to exert upward pressure on yields, its impact is not as significant as suggested by media reports and will be offset by changes in monetary policy expectations. As for fiscal concerns, he added that there has been no substantial fiscal news recently that would trigger a sharp surge in yields. (Sina Finance)