Benchmark US yields have soared to near 4.70% on Tuesday from a September low of 3.60% as investors brace for inflationary policies under Donald Trump’s second US presidency. The economy’s resilience has spurred traders to push back expectations on the Federal Reserve’s next quarter-point interest rate cut to July, prompting a rethink on just how high yields can go.
US Treasury 10-year yields can rise further to 5% as the economy hums along, a level that would offer a buying opportunity, according to Citigroup Inc.’s wealth division.
“Close to five is certainly possible” this year, Steven Wieting, chief investment strategist and chief economist, said on 10-year US yields. “Five would be something that we would think would be really appealing,” he said in a briefing in Singapore.
