SocGen's Edwards: 10-year Treasury yields will fall to -1% in the next recession

Will converge with European and Japanese 10-year yields

Tom Eckett
clock • 2 min read

Société Générale's bearish strategist Albert Edwards has told Investment Week he believes US 10-year Treasury yields will fall to as low as -1%, as he warned of "double bubble trouble" in US markets.

Edwards previously forecast that US 10-year yields will fall below zero but told Investment Week these could go as low as -1% in "the depth of the next recession" as they converge "totally" with Japan and Germany. "Sound ridiculous? German 10-year yields were -0.2% last July," he added. On Monday, rising inflation expectations caused a sell-off in the global bonds markets with spreads in US 10-years widening to 2.73%, the highest point since April 2014. Although Edwards predicted yields to widen beyond 3% first, he said they would drop into into negative territory as the US and Eur...

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