Larry Summers Predicts 10-Year Yields Will Hit 4.75% Or Higher In Next Decade As Economy Shifts To 'New Era'
Portfolio Pulse from Piero Cingari
Former U.S. treasury secretary Lawrence Summers predicts that 10-year yields could rise to 4.75% or higher in the next decade due to factors such as inflation, government borrowing needs, and term premium. He also anticipates a robust economy in the short term but does not rule out a possible recession in 2024. Following the release of July's FOMC minutes, 10-year U.S. Treasury yields rose to 4.26%, the highest since September 2007. The iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) declined 0.3%.
August 16, 2023 | 7:33 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) declined 0.3% following the release of July's FOMC minutes and the rise in 10-year U.S. Treasury yields to 4.26%. The ETF could be further impacted if 10-year yields rise to 4.75% or higher in the next decade as predicted by Lawrence Summers.
The iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) tracks the investment results of an index composed of U.S. Treasury bonds with remaining maturities between seven and ten years. Therefore, any significant changes in 10-year yields, such as the predicted rise to 4.75% or higher, could have a direct impact on the ETF's performance. The recent decline in the ETF following the rise in 10-year yields to 4.26% demonstrates this correlation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100