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Could the 10-year Treasury yield top 6% in 2027?

The Kobeissi Letter says a repeat of historical yield increases after the Fed begins hiking rates could push the 10-year Treasury yield above 6% in 2027 for the first time since August 2000.

TK
1 Source, 14d ago, first seen 14d ago

TLDR

The Kobeissi Letter points to tightening cycles since 1963, saying the 10-year Treasury yield rose an average of 50 basis points—0.5 percentage points—in the first six months after the Fed began raising rates. It says the average increase reached 110 basis points over the following 12 months. Its scenario puts the yield above 6% in 2027 if that pattern repeats. But the historical outcomes it cites varied widely: increases of up to 400 basis points and declines of up to 70 basis points over the 12 months after the first hike.

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197.4K

1 Source, first seen 14d ago

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Combined views

197.4K

1 Source, first seen 14d ago

1.2K likes74 comments145 saves176 reposts

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Sentiment

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1 Source

@KobeissiLetterIs the 10Y Note Yield heading to 6.0%? Historically, the 10Y Note Yield has risen +50 basis points on average in the first 6 months after the Fed began hiking rates, across tightening cycles since 1963. Over the following 12 months, the average increase reached +110 basis points. If this materializes again, the 10Y Note Yield would surpass 6.0% next year for the first time since August 2000. Meanwhile, the most extreme cases saw increases of up to +400 basis points in the 10Y Note Yield over the 12 months following the first hike. On the other hand, some declines of up to -70 basis points were also recorded over the same period. More US Treasury intervention is likely coming.
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    1 Source

    @KobeissiLetterIs the 10Y Note Yield heading to 6.0%? Historically, the 10Y Note Yield has risen +50 basis points on average in the first 6 months after the Fed began hiking rates, across tightening cycles since 1963. Over the following 12 months, the average increase reached +110 basis points. If this materializes again, the 10Y Note Yield would surpass 6.0% next year for the first time since August 2000. Meanwhile, the most extreme cases saw increases of up to +400 basis points in the 10Y Note Yield over the 12 months following the first hike. On the other hand, some declines of up to -70 basis points were also recorded over the same period. More US Treasury intervention is likely coming.
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