Franklin Templeton's Fixed Income Chief Investment Officer, Sonal Desai, anticipates an increase in the 10-year U.S. Treasury yield to 5% or more. This projection comes as the U.S. government increases its issuance of debt to fund trillions in deficits.
Desai considers a yield between 4.5% and 5% to be a reasonable level. However, she notes that if investors perceive a significant rise in U.S. deficits, the yield could surpass the 5% mark.
Currently, the 10-year Treasury yield stands at 4.435%, up from 4.27% earlier this month.
