[UBS Predicts Fed Rate Cuts Will Push 10-Year Treasury Yield Down to 3.50%] UBS stated in its outlook report that the rapid growth of U.S. debt will prompt investors to demand higher term premiums, leading to a steeper yield curve. UBS analysts expect the Federal Reserve may further cut rates, bringing them down to a neutral level. The 10-year U.S. Treasury yield could drop to 3.50% next year and rebound to 4% by the end of 2026.