Economists at Société Générale target the US 10-year Treasury yield at 2.25% by end-2022 as the trajectory for growth and employment remains strong.

The Fed is unlikely to let the yield curve flatten too much

“The trajectory for growth and employment remains strong, which supports our call for modestly higher yields.”

“We expect the 10y Treasury yield to rise to 2.25% by end-2022 and the yield curve to remain relatively range-bound.”

“The Fed is likely to err on the side of caution and not allow the yield curve to flatten too much.”