Treasury yields are surging — here's how high they might go

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• US government bond yields are rising and will probably continue to do so.
• While it's hard to know how high they will get, some other indicators offer hints.
• Some areas related to Treasury yields include the federal funds rate, risk premiums and inflation expectations. 

Ten-year Treasury yields have more than doubled since the 35-year low of 1.36% was reached in June 2016. Yet by historical standards yields are still low, remaining under 3%. With inflation rising, the Federal Reserve reducing its balance sheet, and rising budget deficits as far as the eye can see, there are plenty of reasons to expect yields to move higher from here. We are often asked: How high do we expect bond yields to go in this cycle?

We don’t have a crystal ball, and usually advise against trying to time the market. However, investors often ask for an estimate for planning purposes. To answer that question, we can look at some metrics that have been useful in the past and may provide some helpful guidance for this cycle. Here are three that we can use to estimate where 10-year Treasury yields may peak.See the rest of the story at Business Insider

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See Also:

• The corporate bond market could be in for a rude awakening
• Investors are fighting the Fed — and it's doing dangerous things to the bond market
• Deposit rates at big banks aren't keeping up with Fed rate hikes

SEE ALSO: The 10-year is getting really close to the key 3% level