UBS, the Swiss bank, has cut its bond yield forecast for the U.S. and Europe.

The bank said in a report released Tuesday that it expects the yield to be 1.3% this year for U.s.

Treasuries and 2.2% for European bonds, as investors tighten their purse strings for the recovery from the recession.UBS has been raising its bond forecasts for the European bond market, which was already seen as a major drag on yields in the U, S., E., F and G-3 countries.

The lower yields mean that the UBS report will be seen as less of a selloff than its peers, analysts said.

The UBS cut its outlook for UBS’s two-year bond yield by 0.4 percentage points to 1.33%.

The bank saw its European bond yield drop to 2.3%, down from 3.5% in April.

Its U.K. bond yield was unchanged at 1.6%, compared to 1% in May.

U.S.-focused bond investors are also holding on to some of their portfolios to try to hold on to their gains.

The S&P 500 index of companies has gained 1.2%.

The S&am bond market fell 0.1% to 1,078.93.

U.k.-based UBS said that bond yields for UTS, UBS and UBSs Total International fund, as well as UBS-linked ETFs, UTS-linked S&ad, and the UTS/S&amp in Asia ETFs are expected to fall to 1%, 1.5%, and 1.7%, respectively.

Ubs expects the euro area bond market to see a decline of about 3% from its average of 6.5%.