Société Générale sees 10-year US bond yields falling after hitting highest levels of 2.8% to 3% in the third quarter as markets begin to predict a recession in the US economy.
Also, the bank expects a recession in the US economy in late 2019 to early 2020 if yields curve flattens or start to get inverted amid a faster pace to raise interest rates, fueling that expected recession.
The bank expects Fed to raise interest rates three times this year as inflation is seen slowing in the second half of 2018.
