Long-Term Treasury Yields Expected To Rise From Current Levels

1437 ET – The 10-year Treasury yield could move above 4%, NEPC’s Phillip Nelson says. He thinks it is going to take some time for consumer price increases to slow down to a pace the Fed finds satisfactory. Until then, policy rates will remain high, pushing Treasury yields higher as markets adjust. Nelson sees the 10-year “somewhere close to the 4% range.” For most of this year, the benchmark has traded between 3.3% and 4.1% and is at 3.8% today. “Eventually, the long end of the Treasury market has to adjust to higher inflation expectations and so we can see 10-year, 30-year start moving north of 4% and that would be appropriate.” (paulo.trevisani@wsj.com; @ptrevisani)