The 10-year Treasury yield could hit 5%

"The 10-year Treasury yield could hit 5%," Ed Yardeni, head of research, a veteran Wall Street investor, told Bloomberg in an interview on the 22nd local time.

The 10-year Treasury yield will reach 4.5% early next year, Yardeni said, adding that much of whether to hit 5% depends on the election results.

"It doesn't matter which side wins completely, whether Democrat or Republican," he said. "Whatever the outcome, the fiscal deficit and debt will increase, and it could lead to inflation."

"If that happens, the U.S. Federal Reserve (Fed) could stop easing and even discuss interest rate hikes," Yardeni said, warning that "bond vigilantes are waking up."


A senior expert said, "The fact that the Trump administration's concerns about widening fiscal deficits, fiscal deficits, and inflation expectations ahead of his inauguration have recently encouraged the rise in U.S. Treasury yields," adding, "The Bank of America (BoA) is currently testing the top of the U.S. Treasury yield, mentioning the possibility of a rate hike in the second half of the year." "We need to look at additional U.S. consumer price index (CPI) indicators to be released this week," he said.

Considering the top of the 10-year U.S. Treasury yield at 5%, it is also desirable to buy U.S. long-term bond ETFs in installments at this point, but securities firms should be wary of the direction of interest rates immediately after the Trump administration takes office later this month