Amundi’s Bond Chief Says US 10-Year Yield Can Exceed 5% Again
- Yield has already soared 100bps to near 4.70% since September
- Advance to 5% milestone could present buy opportunity: D’Orsay
The US Treasury building in Washington, D.C.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
There’s a “reasonable” chance that the yield on 10-year US Treasuries will again test the key level of 5%, said Amaury D’Orsay, head of fixed income at Amundi SA, Europe’s largest asset manager.
D’Orsay is among a growing chorus warning that bond market repricing may have further to go, despite the Federal Reserve’s pivot to interest-rate cuts. He puts the probability of revisiting 5% — a milestone only reached a handful of times over the past two decades — at about 25% to 30%.