Amundi: A 10-year yield breaking 5% will invite intervention, The Federal Reserve (FED) may restart large-scale QE.

Jin10 data reported on April 14, the CEO of Europe’s largest asset management company, Amundi, stated that if the 10-year U.S. Treasury yield breaks above the 5% level, the Federal Reserve (FED) will intervene in the U.S. Treasury market and may launch a comprehensive bond purchase program later this year. Vincent Mortier expressed surprise at the speed at which long-term U.S. Treasury yields surged during the recent dumping period. The yield on the 10-year U.S. Treasury has risen by nearly 25 basis points this month, reaching around 4.5%, which Mortier believes is a “painful but manageable” level for the U.S. government. He expects the Federal Reserve (FED) to enter the market and buy 10-year Treasuries at the 5% level, and for 30-year Treasuries, he anticipates that action will be taken once yields exceed 5.25%, which is about 40 basis points higher than current levels.