Forecasters on Wall Street are gearing up for a strong year for Treasuries, amid expectations of rising interest rates and a strengthening U.S. economy.
The outlook comes as Federal Reserve Chair Janet Yellen plans raise interest rates in 2015. A group of economists surveyed this month expect 10-year yields to reach 3.01 percent, according to Bloomberg. That's about twice as much as was anticipated for 2014.
"Next year should be the break-out year finally," Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd., told Bloomberg. "The market is ignoring the rhetoric that Yellen and the FOMC is getting closer and closer to tightening. The market has it wrong."
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Bond sentiment hasn't been this optimistic since 2009, when U.S. debt securities faced some of their deepest losses.
Government bonds were the top pick among those surveyed. Yields on the two-year note are expected to more than double to 1.53 percent and those on the 30-year bond to rise to 3.70 percent.
The renewed confidence is partly due to the consensus about the healthy recovery, with strong a GDP figure and a declining unemployment rate.
Read the coverage on Bloomberg.