Ten-year Treasury yields will stage a comeback as businesses reopen, Wells Fargo's Michael Schumacher predicts (via TradingNation)
Wells Fargo Securities believes 10-year Treasury yields are on the verge of a sustainable run above 1%.
Schumacher's base case points to a better jobs picture as businesses reopen. A rebound in hiring won't happen overnight, but he feels it'll be enough to inject investor confidence into the markets and provide a catalyst for yields. His year-end target on the 10-year yield is 1.25%, which assumes there will be no second wave of virus cases. The yield hasn't traded above that level since March 20 when it hit a high of 1.28%."It sounds really out there, but it's not. You consider the path of yields this year, it's been straight down," said Schumacher. "If the virus course does reverse and if the economic impact seems like it's mitigating somewhat, 1.25% seems very much in reach to us.
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