Societe Generale Predicts Decline in U.S. Treasury Yields by 2026

On December 1, Société Générale strategists forecasted continued resilience in the U.S. economy with Federal Reserve rate cuts expected in December 2025, influencing U.S. Treasury yields.

This anticipated monetary policy shift could impact bond markets and possibly cryptocurrencies through changes in risk appetite, though no explicit connections to crypto assets were detailed.

Yield Changes and Their Ripple Effects on Financial Markets

Société Générale’s strategists expect U.S. Treasury yields to decrease due to anticipated Federal Reserve rate cuts in 2025 and 2026, according to their latest report. The strategists predict the two-year yield will drop to 3.20%, while the ten-year yield will decline to 3.75% by the end of 2026.

These yield adjustments may influence various financial sectors. Historically, changes in Treasury yields impact investor behaviors in risk asset markets. Although specific consequences for crypto markets remain undiscussed, they could emerge as yield-seeking behavior shifts.

We predict U.S. Treasury yields to decline by the end of 2026, with the 2-year Treasury yield falling to 3.20% and the 10-year yield to 3.75%.

— Société Générale Interest Rate Strategy Team, Société Générale

Community sentiment on these forecasts is muted, with no significant comments from crypto leaders or regulatory responses evident. The focus remains on how rate cuts may foster broader economic growth amid slight labor market deterioration.

Market Data and Insights

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The projection of declining Treasury yields amid expected Federal Reserve rate cuts could herald macroeconomic shifts akin to previous periods where bond market trends indirectly impacted crypto valuations.

Bitcoin’s current price stands at approximately $86,625, reflecting a 5.38% decline over the past day and a 0.06% increase over the past week, as reported by CoinMarketCap on December 1, 2025. With a striking market cap nearing $1.73 trillion, Bitcoin dominates at 58.68% and saw a significant trading volume of about $62.46 billion within 24 hours.

Insights from the Coincu research team suggest these anticipated Treasury yield shifts could induce ripple effects across financial systems. Historically, easing in monetary policy has fostered investment diversification into high-growth sectors, including technology and digital assets. Federal Reserve rate cuts crypto reaction offer further context on potential impacts on crypto markets.