Dan Fuss’s 4% Treasury Yield Forecast Comes With a ‘Huge If’
- Loomis Sayles vice chairman makes prediction in N.Y. briefing
- Caveat is that ramped-up trade tensions could tamp down rates
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Veteran bond manager Dan Fuss has a bold call that the 10-year Treasury yield will be above 4 percent in two years. But the prediction comes with a big caveat: that U.S.-China trade tensions don’t escalate.
And that’s something the vice chairman of Loomis Sayles & Co. is definitely concerned about. In Fuss’s view, a round of debilitating tariffs would undermine the economy and derail the Federal Reserve’s plan to normalize monetary policy. Not to mention the potential for geopolitical tension, as seen this week with events in Syria.