Blackrock Global Fixed Income CIO, Rick Rieder told CNBC on Monday that the latest runup in the 10-year treasury yield will not go on for much longer.
Economic data is starting to signal that the rate growth in 2019 will be slower and Rieder's opinion is that bond yields are coming to the end of their rise to 7 year highs.
Rieder told CNBC that he had been feeling nervous about his prediction that the 10-year yield would reach 3.25% by the end of 2018, amidst worries the Fed would ramp up its rate raising schedule. He says the Fed will go again in December, bringing the total number of rate hikes this year to four, but says that the pace of rate increases will slow to one or two hikes next year.
The stock market hasĀ not reacted well recently to the outlook for rising yields last week, as Chair James Powell said last week the Fed "still has a long way to go yet before it gets rates to where they are neither restrictive nor accomodative."
