Plurimi's CIO Armstrong: 10-year Treasury yields to widen beyond 4%

Short US equities

Patrick Armstrong, CIO of Plurimi Investment Managers, has said 10-year Treasury yields will surprise many investors by rising dramatically, as a result of interest rates being hiked much faster than markets anticipate.

Speaking at the Thomson Reuters Lipper European Alpha Expert Forum in London, Armstrong (pictured) said he expected 10-year Treasury yields, which are currently at 2.3%, to reach 4.2% in the near future, far beyond veteran bond investor Bill Gross's 2.4% yield barrier, which could signal a bond bear market. This also exceeds forecasts in a recent Cross-BorderCapital report entitled Why are the bond bears growling?, which suggested 10-year Treasury yields could rise to 3.5% due to the "renormalisation of cross-border capital flows" to Europe and China. The big short: Fund managers warn...