The 10-year Treasury will soon increase, eventually reaching 6 percent, predicts Societe Generale.

The French lender had previously said the benchmark 10-year Treasury would reach 3 percent in the spring of 2014 and 5 percent by 2017 and that the Federal Reserve would start tapering its bond purchases this autumn and end them at the end of the year.

"Come the end of 2017 we actually think the Fed's fund rate could be close to somewhere around the 6 percent mark, " Michala Marcussen, Societe Generale global head of economics, told CNBC. "So we still have an aggressive call out there in terms of the interest rate dynamics."

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The Fed has continued buying $85 billion of mortgage and Treasury bonds a month.

Although the government shutdown that disrupted the economy in October delayed its forecast, Societe Generale is sticking with its forecast for rising interest rates.

The French lender is optimistic that the United States will obtain a sustainable recovery. However, financial turbulence prompted by budget logjams in Washington could cause Societe Generale to change its forecasts, she noted.

"One piece of good news is that we do have the midterm elections in November 2014," she told CNBC, "and hopefully Washington will be a bit scared as we get closer to that date, that voters will remember what's been going on in terms of the fiscal side and that that would push them into a more durable solution."

After the Fed confirms that the economy is improving and waits for the next round of fiscal uncertainty pass early next year, it will start tapering its bond purchases this spring and begin raising rates in mid-2015, she told CNBC. From then, monetary tightening will accelerate.

Many experts worry that tapering could cause rates to spike, leading to turmoil in financial markets.

Shrinking the Fed's quantitative easing should help improve the odds for stability in the future, according to the International Monetary Fund's Global Financial Stability Report.

"Yet managing a smooth transition could prove challenging, as investors adjust portfolios for a new regime with higher interest rates and greater volatility," the IMF warned. Risks of turmoil in emerging markets are also substantial, it added.

The Fed must be prepared to counter "adverse shocks" such as fire sales of assets and should increase oversight to control excessive leverage in the shadow banking system and large mortgage real estate investment trusts.

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