STOCKS | Peter Schiff Warns of Structural Bond Bear Market, Sees 10-Year Yield Above 8%

Peter Schiff said on Monday that the bond market has entered a structural bear market, which he said will push U.S. Treasury yields far above their 2007 highs. According to Sina Finance, the U.S. 10-year Treasury yield touched 4.78% on Monday, its highest level since 2007. Schiff said that once the 5.15% peak from May 2006 is broken, the next targets would be the 6.44% peak from 1999 and the 8.03% high from 1994. He added that U.S. national debt in 1994 was far below $5 trillion, while it is now above $40 trillion. Schiff also said the Federal Reserve's only real tool to curb long-term yields would be to expand quantitative easing, but he argued that would simply trade one problem for another. He said that would bring higher inflation and further gains in bond yields, and added that this is why he is bullish on gold. He also said that if the 10-year Treasury yield reaches 8%, mortgage rates would move above 10%.