Playing fortune teller on rising interest rates isn't just for Bill Gross
] chief investment officer for fixed-income, Rick Reider
, says he thinks yields on 10-year Treasury notes will rise above 3 percent as the Fed begins tapering, Bloomberg's
Liz Capo McCormick writes.
McCormick quotes Reider from an interview with Bloomberg Television's Sara Eisen and Tom Keene, in which he said, "You have got to taper down QE. It has created this tremendous distortion in interest rates. We think fair value on the 10-year is close to 3 to 3.25 percent. You are getting very close to there."
Treasuries have lost 3.6 percent this year through August 16 and yields on the benchmark security rose to 2.87 percent, the highest since July 2011, McCormick writes.
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