0909 ET - Soft U.S. producer inflation takes some oomph away from Treasury yields, but they remain elevated, with some analysts still expecting the 10-year to reach 5% this year. SWBC's Chris Brigati sees the benchmark breaching that threshold in 1Q "as both fundamental and technical factors suggest the higher for longer interest rate dynamic will continue for the foreseeable future," he writes. Brigati says it could be an opportunity for investors to lock in high yields while using fixed-income to balance risks in their portfolio. He says stocks can withstand the 10-year at 5%, although some volatility is to be expected initially. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
January 14, 2025 09:09 ET (14:09 GMT)
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