Blowout US Deficit to Keep Bond Yields High, Market Veteran Says

Despite cooling inflation, a growing US deficit will force yields to stay elevated, Ed Yardeni wrote.
The deficit has widened as tax revenue fell, but costs of federal programs have risen rapidly.
The 10-year Treasury yield is likely to remain elevated at around 4.25%-4.5%.
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Despite declining inflation, the size of the US federal deficit will force bond markets to keep yields high, Ed Yardeni wrote on Monday.
That’s as the Treasury Department will be pressured to attract T-bill buyers in order to offset the government’s overspending, which is headed for $2 trillion for fiscal year 2023.