Traders Waiting for 3% U.S. Yields Should Prep for Pain: Bianco
- 10-year Treasury yields have risen 30 basis points in 12 days
- A shakeout testing convictions looms by mid-2017, Bianco says
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As benchmark U.S. government bond yields gun for their highest levels since 2014, traders shouldn’t yet get excited about the long-awaited bear market, according to veteran investment analyst Jim Bianco.
“We’ve got this gigantic short in the bond market right now -- everybody’s positioned for 3 percent yields,” Bianco, president of Bianco Research LLC in Chicago, said in a Bloomberg Television interview. “Everybody makes money if it goes to 3 percent yields.”