Wall Street forecaster Jim Bianco expects Treasury yields to go a lot higher — and possibly overshoot through five percent in the next couple of weeks.
"I don't think we're near the end of this move in the bond market," the Bianco Research president told CNBC's" If the Federal Reserve hints about ending interest rate hikes while investors still sense inflation, Bianco warns they won't buy bonds."That's what I think has been killing the bond market," he said."The more the Fed talks about being done, waiting [and] assessing all the rate hikes they've done — the more that they're making it worse."and 10-year Treasury notes, as well as the 30-year Treasury bond, hit their highest levels since 2007.
"We're just a little bit above fair value right now. I think what you see in the bond market is a capitulation," noted Bianco."Most of the year bond investors [and] bond managers have been long. They've been trying to argue why we're going to have a recession. Why there's going to be a rally. And, they've been getting their brains beat in, and they can't take it anymore.