Inflation consensus ‘strongest I’ve ever seen:’ Wall Street vet

Inflation consensus ‘strongest I’ve ever seen:’ Wall Street vet

Regarding looming inflation risks and their resulting Treasury yield rates, Wall Street veteran and co-founder of DataTrek Research Nicholas Colas stated that he has “never seen a stronger consensus” surrounding any macroeconomic issue in his career.

“Fed money printing plus fiscal stimulus/debt issuance plus economic reopening is supposed to equal high and likely lasting inflation,” Colas said. “The 10-year Treasury will go to at least 2 percent and maybe 3 percent or higher.”

However, in spite of the clear consensus on inflation and bleak forecasts, the 10-year Treasury yield has seemingly shrugged off the looming expectations. Colas noted that the year-to-date high 10-year Treasury yield (^TNX), 1.74% seen on March 19, has still not been broken. It currently stands at 1.53 as of June 8.