Fed Hike Signals Bond Market Turbulence as 10-Year Yield May Break 6%

Yahoo Finance reports that after the Fed’s rate hike, Kobeissi Letter strategists estimate the 10-year U.S. Treasury yield could rise about 50 basis points in the first six months of tightening and around 110 bps over the next year, potentially pushing the yield above 6% next year—the first time since 2000. In extreme scenarios yields could climb by as much as 400 bps. Treasury interventions may persist but have failed to prevent the move as yields recently surpassed 5%. The development comes amid sticky inflation, higher energy costs, and the Fed’s updated projections, with the dot plot not ruling out another hike this year. Markets warn of a disorderly bond sell-off even as some fund managers trim equity exposure, though Goldman Sachs cautions the tightening cycle may be only starting.