Treasury yields are expected to decline over time as inflation moderates, a U.S. Treasury official said, with the government prioritizing lower long-term yields, Walter Bloomberg reported. The outlook comes as elevated yields have increased borrowing costs for housing, companies and consumers. Because Treasury yields benchmark mortgages, corporate bonds and other loans, a sustained decline could support housing activity, business investment, expansion and hiring. The projection remains conditional: the pace of disinflation, labor-market resilience and Federal Reserve decisions will shape the path of yields. The Treasury manages government finances and debt issuance, while the Federal Reserve sets monetary policy and has maintained a restrictive stance to curb inflation.