Despite cooling inflation, a growing US deficit will force yields to stay elevated, Ed Yardeni wrote.
The 10-year Treasury yield is likely to remain elevated at around 4.25%-4.5%.
"That's the highest ever excluding during the Covid-19 pandemic, despite Biden's claim that his administration has implemented measures to slash the deficit," Yardeni wrote.
So, even as inflation heads towards the Federal Reserve's 2% target rate, the 10-year Treasury bond is likely to remain elevated at around 4.25%-4.50%, the market veteran said.
Increasing the yield may be necessary as net inflows into bond mutual funds and ETFS has dwindled, Yardeni wrote.
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