Given that mortgage rates are normally pegged to the 10-year T-note, the development could lower the cost of buying a home.

They said that about our 1½% US T-Note forecast this time last year!

When fearful investors were rushing into Treasury securities in recent weeks, they drove the 10-year T-note as low as 3.39%.

What is the Correlation Coefficient? 10 Year T-Note Forecast.

Spinello figures the T-note may head back to 4% soon as the supply of new bonds balloons again and investors demand a higher return to take the debt.

One of our key comparative metrics is flashing Red this morning and that is in the 10yr Bund/T-Note spread.

US T-NOTE: 'Should break above the 116-19 resistance area after a short term downward consolidation.

Even if the yield on a five-year T-note fell to zero — a highly unlikely event — bondholders would only earn about 5% more in capital appreciation, Pimco's Simon says.

MARCH T-NOTE: 'US 10 years are more bearish while they trade below 125.16 and while this remains the case the expectation is for limited bounces and further price weakness.

If economic growth quickens in the next 12 months, the yield on the 10-year T-note will probably rise to about 3.5% by this time next year, says Kim Rupert, managing director of global fixed income analysis for Action Economics.

LONDON, Aug 19 (Reuters) - Euro zone government bond futures opened higher on Tuesday, boosted by U.S. T-Note futures hitting a four-month high in Asia overnight prompted by a Wall Street sell-off.

RBS strategist Andy Chaytor said with euro zone growth data slowing but tentative signs of a recovery in the U.S., the turning point for the T-note/Bund spread, which is at its tightest level in six weeks, is likely to be close. '

Rick Rieder, chief investment officer for fixed income at BlackRock Inc. in New York, said he's expecting Treasury yields to "drift higher" from here, lifting the 10-year T-note close to 4% by year's end, assuming Japan's nuclear crisis ends and the U.S. economy stays on a growth track.