The benchmark 10-year Treasury yield, correlated to home mortgages, could jump to 3 percent in the first quarter of next year, says BlackRock's Rick Rieder.
The 10-year touched 2.64 percent in tumultuous trading early Thursday, after the Fed Wednesday raised interest rates as expected, and also slightly increased its forecast from two to three more rate hikes for 2017. The is most directly linked to Fed rate hikes, and that rose to 1.28, a seven year high.
"I think we're moving into a healthier environment where the economic data matters. You have a Fed that is certainly watching global growth and watching inflation around the world," said Rieder, CIO of global fixed income at BlackRock.