Don’t rule out a 10-year Treasury Note yield as high as 2.25% this year.
That’s the message from Wells Fargo Securities’ Michael Schumacher, ahead of Wednesday’s Federal Reserve interest rate decision.
“The fiscal stimulus is enormous, and the vaccine rollout seems to be accelerating quite a bit — not just here in the U.S.,” the firm’s head of macro strategy told CNBC’s “Trading Nation” on Tuesday. “A lot of things are coming together to push yields up.”
Yet, Schumacher said his firm doubts Fed Chairman Jerome Powell will show immediate concern.
“He’s been pretty sanguine about the whole increase in yields. We think he’ll maintain that stance tomorrow,” he said. “Our view at Wells Fargo is…