High Treasury yields have been a sharp focus in the market, with some concerned the 10-year (^TNX) will hit 5%.
T. Rowe Price head of global investment grade fixed income Steve Boothe expects bonds will retest those recent highs, and, if a certain sequence of events happen, to maybe touch 6%.
"The reality is that inflation is heading higher. Inflation, in our view, as we trend into the middle part of the year, we think the risk is that it's closer to 4% as opposed to the policy target of 2%. This in and of itself will put upward pressure on bond yields," Boothe tells Yahoo Finance.
So what has to happen for the 10-year yield to possible hit 6%? Watch the video above to find out.
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This post was written by Stephanie Mikulich.
