Yields on 10-year Treasury notes will rise above 3 percent as the Federal Reserve scales back its debt purchases, according to Rick Rieder, chief investment officer for fundamental fixed-income at Blackrock Inc.
The Fed’s quantitative easing “is too big,” Rieder said in an interview with Tom Keene and Sara Eisen on Bloomberg Television. “You have got to taper down QE. It has created this tremendous distortion in interest rates. We think fair value on the 10-year is close to 3-to-3.25 percent. You are getting very close to there.” http://www.bloomberg.com/news/2013-08-19/u-s-10-year-yields-to-rise-above-3-blackrock-s-rieder-says.html