FXStreet reports that economists at Danske Bank expect higher long-term US yields, but mainly in the second half of the year.

“We expect US rates and yields to continue to tick up in H2 21 as the US recovery gains speed, inflation expectations and real interest rates continue to rise and markets really begin to discuss the timing of Fed QE tapering. 10Y US yields look set to hit 2.1% by the end of 2021.”

“The markets are likely to reprice the Fed, pricing earlier and a larger number of policy rate hikes, putting further upward pressure on 5Y US yields. We expect no US rate hikes for the next two years, but the market could well begin to speculate with a vengeance in the Fed hiking as early as 2022.”