US T-bonds to face continued pressure SECTIONS Last Updated: Jan 07, 2021, 10:56 AM IST Share ETMarkets.com Our forecast for US Q1 growth is now around minus 2% given that lockdowns and the re-intensification of virus spread in the US will imply a much weaker profile in the very near term and that could dampen the move in the treasury, says US treasury bond yields have risen above 1% for the first time after the Democrats looked set to control the Senate. What are the implications? The bond market has been reacting to the results of the Georgia runoff elections and there has already been pressure on bonds because of the vaccines and potential increase and improvement in growth that we are expecting in the second half of this year. Now with the Senate potentially being in Democratic control and there being a Blue sweep means that the potential for a large fiscal stimulus has risen quite significantly, which in turn will imply stronger growth prospects in the US.