Institutional analysis: U.S. 10-year yield is set to hit 3% as soon as this week as inflation continues to rise

 On April 11, according to institutional analysis, the yield on the 10-year U.S. Treasury bond is set to hit 3% as soon as this week. Real yields on inflation-protected bonds (TIPS) could rise below zero. U.S. CPI data due on Tuesday is expected to rise to 8.4%. Market commentary has become increasingly pessimistic. Hatzius, chief U.S. economist at Goldman Sachs, said the Fed may need to raise its benchmark interest rate to “above 4%” if the economy doesn’t slow. U.S. bond funds suffered their biggest one-day outflows in more than two years, after Fed Governor Brainard said last week that the central bank would start shrinking its balance sheet as soon as May, EPFR data showed. Term premiums have also soared. But rising yields are a good thing for U.S. Treasuries, which may start to attract some investors. The 10-year U.S. Treasury yield is now 120 basis points above the average bond yield of the rest of the G7, with the widest spread in a year. (Golden Ten)