UBS: 10-Year Treasury Yields Could Fall to 3.5% by 2024, Boosting Bonds Over Stocks

UBS strategists expect 10-year Treasury yields to fall to 3.5% by mid-2024 as growth slows and Fed tightening ends.

This could deliver double-digit returns for bond investors after recent fixed income meltdown.

UBS holds a neutral view on stocks, seeing limited 4% upside for S&P 500 through mid-2024.

Longer-duration bonds have faced one of the worst crashes ever recently.

UBS base case is yields fall further as growth slows, making bonds more attractive than stocks.