Critical information for the trading day
by Steve Goldstein
Market Watch
But the factors that led to that brief selloff in Treasurys are very much still at hand. Chief among them are the rollout of COVID-19 vaccines as well as the huge fiscal stimulus already enacted with more in the pipeline, the pent-up spending power in household savings, and easy monetary policy.
Scott Peng, the founder and chief investment officer of New York investment manager Advocate Capital Management, says a perfect storm is being unleashed. His model estimates the 10-year Treasury yield will jump 162 basis points this year and another 160 basis points next year — which is well ahead of market estimates of roughly 17 basis points of gains in each of the next two years. The 10-year yielded 1.12% in early Wednesday action.