Treasury 10-year yields will rise to as high as 3.5 percent in the next six months as the market prices in a steeper pace of Federal Reserve tightening, according to Goldman Sachs Asset Management.
The U.S. central bank will probably raise interest rates four times this year, defying the consensus for around three, said Philip Moffitt, Asia-Pacific head of fixed income in Sydney at the firm, which oversees more than $1 trillion. Yields will also increase as the Fed trims the holdings of Treasuries it purchased through quantitative easing, he said.
