Treasury yields seen rising to 3.5%

New chief: The US 10-year yield jumped to a four-year high of 2.89 on Monday on signs inflation is quickening and amid uncertainty about the path of Fed tightening under new chairman Jerome Powell. — AFP

SINGAPORE: Treasury 10-year yields will rise as high as 3.5% in the next six months as the market prices in a steeper pace of Federal Reserve tightening, according to Goldman Sachs Asset Management.

The US central bank will probably raise interest rates four times this year, defying the consensus for around three, said Philip Moffitt, Asia-Pacific head of fixed income in Sydney at the firm, which oversees more than US$1 trillion.