Tags: 10-year | yield | 2.75% | Curry

Experts: 10-Year Treasury Yield Headed Back to 2.75 Percent

By    |   Thursday, 01 August 2013 10:02 AM EDT

The 10-year Treasury yield hit a 23-month high of 2.75 percent July 8, and it's likely headed back there soon, as the market anticipates a tapering of the Federal Reserve's quantitative easing, experts say.

"In the next couple of weeks to two months or so, I think we've got a push coming up to the 2.85 percent, 2.95 percent zone," MacNeil Curry, head of global technical strategy for Bank of America, told CNBC. He sees the 10-year yield at 3.50 percent six months from now.

"If we start to push up to new highs on the 10-year yield — so that's the 2.75 level — I think you'd probably see a bit of anxiety creep back into the marketplace," he added.

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The yield stood at 2.64 percent early Thursday.

As for the Fed, it left policy unchanged at its meeting Wednesday, but many economists expect a tapering later this year.

"The chairman [Ben Bernanke] wants to control volatility by sending rates up to a higher level, but he wants to control the rate at which they go higher," Jim Iuorio, managing director of TJM Institutional Services, told CNBC.

"The spike up to 2.75 percent that happened three weeks ago alarmed him. Now the market thinks he's ready to start opening the door a little further. So we're headed back to those old highs."

To be sure, not everyone is focused on tapering. "The Fed has very little reason to be talking about tapering or tightening at this stage," Mark MacQueen, a money manager at Sage Advisory Services, told Bloomberg.

"The Fed's discussion of [low] inflation [in its policy statement Wednesday] when everybody's looking for a discussion of tapering is telling us something. It's telling us that they continue to be worried about the economy slowing down, not overheating."

Urgent: Has the US Entered Another Bubble Economy? Will It Burst? Vote Now

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InvestingAnalysis
The 10-year Treasury yield hit a 23-month high of 2.75 percent July 8, and it's likely headed back there soon, as the market anticipates a tapering of the Federal Reserve's quantitative easing, experts say.
10-year,yield,2.75%,Curry
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2013-02-01
Thursday, 01 August 2013 10:02 AM
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