Market Analysis: The 10-year U.S. Treasury yield may rise to 6%

Jin10 Data, October 27 - T. Rowe Price's global fixed income head Arif Husain stated that the yield on the US 10-year Treasury bond could ultimately rise from the current level of about 4% to 6%. He wrote in a report, “While I certainly do not think yields will rise in a straight line, a 10-year Treasury yield reaching 5% and eventually rising to 6% is well within the realm of possible outcomes.” Husain expects the reasons for the rising US Treasury yields to be: a surge in sovereign debt supply, stubborn inflation, and extremely poor long-term Treasury valuations. However, he also pointed out that political pressure could force the Fed to cut interest rates, which could ultimately drive long-term Treasury yields lower.