Market Consensus: Get Ready for 3% Treasury Yields

Market Consensus: Get Ready for 3% Treasury Yields

Yields on 10-year Treasurys have lurched 50 basis points upwards since May on fears the Federal Reserve may start scaling back its asset purchasing program, and some economists now forecast yields could reach 3 percent by year-end.

“We expect the 10-year Treasury yield to rise close to 3 percent by the end of the year,” James Paulsen of Wells Capital Management said in a research note on Tuesday. “Rising confidence [in the U.S. economy], which has clearly run through the stock market (in the form of higher valuations), is also now beginning to run through the bond market, pushing yields higher.”

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