Analysts at JPMorgan cut 10-year yield forecast
The US 10-year note is yielding 2.24% today and JPMorgan had expected it to rise to 3.00% by year end. They've now cut that to 2.75%.
The move they say is based on a "weaker outlook on core inflation and reduced expectations around tax reform and infrastructure spending."
Weakness in core CPI in March and April meant their inflation outlook had "changed markedly."
As for the near-term, they say the market still underprices Fed hikes and that yield tend to rise ahead of Fed meetings with press conferences.
That would imply a higher US dollar as well.