Capital Economics' Julian Jessop doesn't back off of a call for 10-year Treasury yields to fall...

|By:, SA News Editor

Capital Economics' Julian Jessop doesn't back off of a call for 10-year Treasury yields to fall to 1.5% by year-end, forecasting "the eurozone crisis will continue to escalate and that the U.S. economy will remain fragile." He points out the downward push in interest rates post-Operation Twist is tied to the notion the Fed will follow through with its pledge - but rates still have room to move even lower after inflation expectations peel back with global prices retreating.