Skip to main content

US Treasuries remain vulnerable to tighter Fed policy

Once the US FOMC has begun to raise its target for the federal funds rate, it is widely expected that subsequent increases will be very gradual, as the rate is only slowly returned to a more “normal” level. However, we think the Committee will raise the rate faster and further than most anticipate in response to higher inflation and that this will drive up the 10-year Treasury yield significantly.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access