chongyeetan
2021-04-26
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10-year Treasury yields will break out of slump within weeks, Wells Fargo predicts
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charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>10-year Treasury yields will break out of slump within weeks, Wells Fargo predicts</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n10-year Treasury yields will break out of slump within weeks, Wells Fargo predicts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-26 08:21 GMT+8 <a href=https://www.cnbc.com/2021/04/25/10-year-treasury-yields-will-break-out-of-slump-in-weeks-wells-fargo.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The 10-year Treasury Note yield may be on the verge of breaking out of its slump.\nAfter stabilizing over the past several weeks, Wells Fargo Securities’ Michael Schumacher predicts the current risk ...</p>\n\n<a href=\"https://www.cnbc.com/2021/04/25/10-year-treasury-yields-will-break-out-of-slump-in-weeks-wells-fargo.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.cnbc.com/2021/04/25/10-year-treasury-yields-will-break-out-of-slump-in-weeks-wells-fargo.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1162068649","content_text":"The 10-year Treasury Note yield may be on the verge of breaking out of its slump.\nAfter stabilizing over the past several weeks, Wells Fargo Securities’ Michael Schumacher predicts the current risk backdrop will re-energize yields in the coming weeks.\nHe lists the Federal Reserve’s high level of comfortableness surrounding rising inflation, the massive amount of fiscal and monetary stimulus in the pipeline and the economic data’s strength.\n“It’s a recipe for yields to go up and perhaps pretty significantly,” the firm’s head of macro strategy told CNBC’s “Trading Nation” on Friday.\nThe 10-year yield is hovering around 1.50%, falling almost 5% over the past month. But it’s up 70% so far this year and 155% over the last 52-weeks.Schumacher expects the 10-year yield to end the year between 2.10% and 2.40%.\n“It sounds aggressive,” he said. “But when you think about the move that happened in February and March, it’s really not that extreme a move.”\nSchumacher warns the opposite is true for inflation.\n“We’ve got inflation rising pretty significantly for the next few months,” he added. “When you think back to a year ago, economies were in lockdown. Inflation actually came down quite a bit.”\n‘Going to pose a difficult problem’\nAnd, that could become a wake-up call for investors and government officials as soon as May. Schumacher notes that’s the last base effect month, a term used by economists to describe an abrupt increase or decrease in data.\n“That’s going to pose a difficult problem frankly for the Fed and further policymakers,” Schumacher said. “They’ll have to figure out, hey, is this actually a real increase in inflation? 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