HSBC's Major Says the 'Trump Premium' Will Push 10-Year Treasury Yields to 2.5%
A big change for a big bond bull.
Parker: 10-Year Yield Jump a Significant Move Last Week
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The 10-year U.S. Treasury yield will hit levels not seen since 2014 before President-elect Donald Trump's first 100 days in office are up, says HSBC Bank PLC Global Head of Fixed Income Research Steven Major.
HSBC hiked its forecast for the 10-year yield by a full 100 basis points to 2.5 percent for the first quarter of 2017, citing the "Trump Premium" as the driving force behind this revised call. But Major, who has long bucked the vast majority of his peers in calling for an extension of the decades-long bull market for bonds, is maintaining his forecast for the 10-year yield to end 2017 at 1.35 percent as Trump's policies will "ultimately fail to deliver."