Tags: Treasury | yield | 10-year | rate

WSJ: Investors See 10-Year Treasury Yield Headed for 3 Percent

Thursday, 05 Sep 2013 07:42 AM

By Dan Weil

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Bond yields have soared since May, and many investors think they have a bit further to go, though they don't anticipate a rout.

The 10-year Treasury yield could reach 3 percent by year-end, a level that hasn't been breached since July 2011, investors tell The Wall Street Journal. At that point Treasurys will start to look attractive, some of them say.

The 10-year yield stood at 2.9 percent late Wednesday, up from 1.66 percent May 2.

Editor’s Note:
New Video Exposes a ‘Great Retirement Heist’

Expectations that the Federal Reserve will taper its quantitative easing as soon as this month triggered that move, and the tapering story will continue to push rates higher, investors say.

"You'll likely see a continued drift up in interest rates, but the speed of the ascent will be increasingly slow," Matt Toms, head of U.S. public fixed income at ING U.S. Investment Management, told The Journal.

The bond market, as measured by the Barclays U.S. Aggregate Index, is on pace for the worst performance this year since 1994, according to the paper.

But a move by the 10-year Treasury yield to 3 percent would represent "a starting point to put some money to work again," Richard Sega, chief investment officer at Conning, told The Journal.

Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, recommends investing in Treasurys.

"I think the sentiment is incredibly bearish about Treasury bonds and Treasury notes," he tells CNBC. If the market drops, "people will again fear deflation, and they will move into 10-year Treasury notes."

As for the central bank, "people are coming around to the conclusion that the Fed will start cutting back on bond purchases," Charles Comiskey, head of Treasury trading at Bank of Nova Scotia in New York, told Bloomberg. "The data is pretty good."

Editor’s Note: New Video Exposes a ‘Great Retirement Heist’

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved