Economics

Pimco Sees U.S. 10-Year Treasury Yields Topping Out at 3.5%

  • Vanguard says investors are getting back into fixed income
  • Pimco, Vanguard, GAM at Bloomberg Invest summit in Sydney

Stretch, Dixon on the U.S. 10-Year Yield Touching 2011 High

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U.S. 10-year Treasury yields will move in a 3 percent to 3.5 percent range for the rest of the year as the Federal Reserve continues raising interest rates, said Robert Mead, co-head of Asia-Pacific at Pacific Investment Management Co.

“We do think this hiking cycle is quite well advanced,” Sydney-based Mead said at the Bloomberg Invest summit in Sydney. “We also know that the backdrop of the U.S. economy has been pretty strong and going for a long time. At some point we will find these high yields will become an impediment for growth.”