Neuberger Warns of ‘Sustained’ Move Higher in Treasury Yields
- Fed may pause its interest rate reductions, Bhatia says
- Yield on US five-year may climb to 4.50% over three months
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Neuberger Berman warned against buying US Treasury bonds on dips, saying the recent selloff could be the beginning of a “surprisingly sustained” move higher in yields.
The risk of the Federal Reserve pausing its interest rate reductions, heightened volatility and resilient US growth as well as sticky inflation could push yields on five-year Treasury notes up to about 4.50% over the next three months, said Ashok Bhatia, the firm’s co-chief investment officer for fixed income. They’re yielding about 4.13% now.