The US 10-year bond yield has hit 2%. It may well pause within the said territory in a narrow range around 2% for a while.
But beyond this, some analysts and observers as well as investors expect an additional rise to the 2.25% area and view this scenario as more likely, as the real rate journeys out of deep negative territory.
Observers believe that the US 10yr is heading for 2.25%. Then, a Fed that delivers 50bp in March is more likely to be getting ahead of the curve which would help contain the 10yr cycle peak to the 2.25% area.
A tame 25bp hike with no bite could leave the market at least pondering a path towards 3% on the 10yr. Markets may not even get close, but on the table it is.
Tags FED interest rate hikes Treasury Yields
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