Treasury yields may be about to break out.
Even though yields temporarily fell after this week’s Federal Reserve decision on interest rates, Wells Fargo Securities’ Michael Schumacher expects the benchmark 10-year Treasury Note rate to end the year as high as 2.20%.
“The 10-year yield is going up a fair bit through the remainder of the year,” the firm’s head of macro strategy told CNBC’s “Trading Nation” on Thursday. “Not a steady rise to be sure. But we do think there’s a pretty strong bear case to be made over the next six [to] seven months.”
Schumacher attributes the inflation comeback for his forecast — with an emphasis on the next 12 months.
“Core PCE which the Fed likes to look at is…