US 10-year yield could be 4.5% in 3 years

The US 10 year yield currently sits around 2%. In his latest video Hamish Douglas of the Magellan Global Fund is not concerned with the timing of Fed tightening but believes rather the issue is where 10 year rates will be in 3 years. “Our view is that the rate may well go higher than the market is currently pricing. We are saying that it could maybe go to 4.5%... We believe the recovery in the United States while being influenced by some short -term factors and slowing down slightly is steadily recovering and we believe that is very likely to be the case next year and the year after. We believe they will tighten interest rates in the short end of the curve and ultimately we still think there is a fairly reasonable probability that rates, for a series of reasons, end up higher than the markets are pricing at the moment. People are very focused on in which month does it start…we’re focused on where does it end”. Click the (VIEW LINK) for the full video. Quarterly here (VIEW LINK)