Baku. 13 February. REPORT.AZ/ Treasury 10-year yields will rise to as high as 3.5 percent in the next six months as the market prices in a steeper pace of Federal Reserve tighteningş
Report informs referring to the Bloomberg, Goldman Sachs Asset Management has reported.
The US central bank will probably raise rates four times this year, defying the consensus for around three, said Philip Moffitt, Asia-Pacific head of fixed income in Sydney at the firm, which oversees more than $1 trillion. Yields will also increase as the Fed trims the holdings of Treasuries it purchased through quantitative easing, he said.
“As QE gets tapered through this year and into next year, we’ve got a big swing in the supply duration coming,” Moffitt said in an interview. “It’s going to put upward pressure on yields. I would think that 3.5 percent is not a very brave forecast.”
The US 10-year yield jumped to a four-year high of 2.89 percent Monday on signs inflation is quickening and amid uncertainty about the path of Fed tightening under new Chairman Jerome Powell. The surge in yields contributed to a selloff in global equities last week as investors reassessed the value of stocks.
