10-Year Treasury yields could get to 4% ‘in a hurry,’ bond fund manager warns 10-Year Treasury yields could get to 4% ‘in a hurry,’ bond fund manager warns
4:16 PM ET Thu, 22 Feb 2018 | 02:19
While Wall Street braces for 10-Year Treasury yields to tick over 3 percent, one bond expert believes that will feel like a piece of cake compared to what may come next.
Sit Investment Associates' Bryce Doty believes investors are in "denial" over how high rates could go this year and the painful impact it could have on stocks.
"We didn't pierce 3 percent this time, but the next 10-Year auction in a couple of weeks is probably certain to do that," he said recently on CNBC's "Futures Now." "I think it's going to just keep going. 10, 20 basis points a month gets you to 4 percent in a hurry."
With the 10-Year Treasury yield trading at four-year highs, Doty notes the bond market is now leading the stock market. Thus, he says, another significant leg down for stocks could be imminent.
"Typically, the stock market has sold off and has created a flight to quality and has driven yields down," he added.
"Everything has changed. You now have the stock market reacting to an uptick in yields and bonds rather than the other way around," Doty stated. "So, I think it's going to take investors a while to re-calibrate that reality."
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http://www.cnbc.com/2018/02/24/10-year-treasury-yield-could-crack-4-percent-this-year-bond-expert-predicts.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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