Wall Street: U.S. government yields will go up in 2015

Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.
Frank Polich | Reuters
Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.

Forecasters on Wall Street are gearing up for a poor year for Treasuries, amid expectations of rising interest rates and a strengthening U.S. economy.

The outlook for higher rates comes as the Federal Reserve moves to raise interest rates in 2015. A group of economists surveyed this month expect 10-year yields to reach 3.01 percent, according to Bloomberg.

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Bond sentiment hasn't been this bearish since 2009, when U.S. debt securities faced some of their deepest losses.

Yields on the two-year note are expected to more than double to 1.53 percent and those on the 30-year bond to rise to 3.70 percent.

The expected rise in yields is partly due to more confidence about the economic recovery, with strong a GDP figure and a declining unemployment rate.

Read the coverage on Bloomberg.