Market analysis: 10-year US Treasury yield may rise to 6%

Arif Husain, global head of fixed income at T. Rowe Price, said the 10-year U.S. Treasury yield could eventually rise to 6% from its current level of around 4%. "While I certainly don't expect yields to rise in a straight line, a 10-year Treasury yield reaching 5% and ultimately 6% is well within the range of possible outcomes," he wrote in a report. Husain expects higher Treasury yields to be driven by a surge in sovereign debt supply, stubborn inflation, and "extremely poor" valuations for long-term Treasury bonds. However, he also noted that political pressure could force the Federal Reserve to cut interest rates, which could ultimately push long-term Treasury yields lower. (Jinshi)