Economics
A $152 Billion Contrarian Says 10-Year Treasuries May Hit 3%
- View has Franklin Templeton’s Desai at odds with Wall Street
- Don’t underestimate how quickly yields can move, Desai says
This article is for subscribers only.
Sonal Desai, chief investment officer of Franklin Templeton’s $152 billion fixed-income group, has an upbeat view of the U.S. economy that’s persuaded her to go against the grain in the Treasury market.
While much of the Wall Street crowd sees a decline in yields, she believes Treasury 10-year rates could jump toward 3% by year-end from just above 2% now. That should happen as a stream of solid reports prompts a swift reappraisal by investors of the economy’s health, she said.