The Zhitong Finance APP noted that Citigroup stated that with the booming economy, the yield on the 10-year U.S. Treasury bond may further rise to 5%, a level that will provide buying opportunities.
Citigroup's Chief Investment Strategist and Chief Economist Steven Wieting commented on the U.S. 10-year Treasury yield: &#34;It is certainly possible to approach 5% this year.&#34; &#34;We believe that a yield of 5% is indeed very attractive.&#34;
As investors prepare for inflation policies during Trump's second term as U.S. president, the yield surged from a low of 3.60% in September to around 4.70% on Tuesday. The resilience of the economy prompted traders to push back expectations for the Federal Reserve's next rate cut by a quarter of a percentage point to July, leading to a reevaluation of how high yields could actually rise.
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The options market also indicates that the yield on the 10-year U.S. Treasury may soar to 5%—the highest level since October 2023. The highly anticipated non-farm payroll data will be released on Friday, and if the data exceeds expectations, it could provide another reason for Treasury traders to sell off.
Wieting does not consider a yield of 5% to be a baseline forecast. Citigroup expects the benchmark yield to be around 4.75% by the end of this year, with the federal funds rate around 3.75%.
Navin Saigal, Head of Asia-Pacific Fixed Income at BlackRock, also believes that higher U.S. bond yields are attractive.
&#34;The rebound in yields is certainly a bit painful,&#34; Saigal said. &#34;But to some extent, it can also be seen as a gift—there is still a lot of cash sitting idle, and now this cash can be put to use.&#34;

Citigroup predicts that the yield on the 10-year U.S. Treasury bond is expected to break 5%, and believes this is a good buying opportunity. With economic growth, the yield has soared from 3.60% in September to 4.70%. The delay in investors' expectations for a rate cut by the Federal Reserve has driven yields higher. The options market also indicates that yields could reach 5%. Citigroup expects the benchmark yield to be around 4.75% by the end of the year. Analysts at BlackRock also believe that higher bond yields are attractive

- Citigroup indicates that the U.S. 10-year Treasury yield may rise to 5% as the economy grows, presenting a buying opportunity.  
- Chief Investment Strategist Steven Wieting believes a yield near 5% is likely and attractive, with the yield recently increasing from 3.60% to around 4.70%.  
- The upcoming non-farm payroll data could influence Treasury traders, while Citigroup expects the benchmark yield to be around 4.75% by year-end.

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Citigroup