Scanning some notes this stood out from Société Générale
Analysts at the bank expect the US 10-year yield to climb to 2% by the end of 2021 citing:
- fiscal support,
- improving fundamentals,
- easy financial conditions
- accommodative Federal Reserve support
Nothing too surprising ion their reasoning but the 2% forecast is above what I’ve seen elsewhere. SG highlights a key risk to their view as the Fed launching a policy response to the slump in price.
If the 10yr keeps on heading up its hard to see the USD losing too much ground.