“10年期美债收益率接近5%是肯定可能的，5%的水平将是我们认为非常有吸引力的点位。”The rebound in yields will certainly be a bit painful, but in a sense, it can also be seen as a gift - there is still a large amount of Cash in a wait-and-see state.
The sell-off in the U.S. bond market is still ongoing, when will it reach a bottom.
On January 8 local time, Citigroup's Chief Investment Strategist and Chief Economist Steven Wieting stated that the U.S. 10-Year Treasury Notes Yield could further rise to 5%, and this would be a good time to buy. Wieting said at a conference in Singapore:
"A 10-Year Treasury Yield close to 5% is certainly possible, and the 5% level would be seen as very attractive to us."
Blackrock Analyst Navin Saigal also believes that the rise in U.S. Treasury yields makes them attractive. Saigal stated during a Bloomberg Television interview:
"A rise in yields will certainly be somewhat painful, but in a way, it can also be seen as a gift—there is still a large amount of cash on the sidelines, and now this cash can finally be put to work."
Recently, U.S. Treasury yields have soared from a low of 3.60% in September to nearly 4.70%, as investors anticipate that Trump's policies in a second term will bring inflationary pressures, while the resilience shown by the U.S. economy has prompted traders to push back expectations for the Federal Reserve's next interest rate cut to July, thus the market is starting to reassess just how high Treasury yields can rise.
On the other hand, the options market also shows that the 10-Year Treasury Yield may soar to 5%. Analysts state that if the non-farm payroll data to be released this Friday is stronger than expected, it could drive further sell-off in the U.S. bond market.
Editor/lambor
