Pimco head sees US yields hitting the brakes at 3.5%

Pimco's co-head of Asia-Pacific, Robert Mead, weighs in on why he thinks US Treasury yields will cap off with the 10-year yield near 3.5%, since yields over 3.5% will damage growth potential, and once yields hit that level investors will be finding more attractive options.

Key quotes

"US 10-year yields will move in a 3% to 3.5% range for the rest of the year.

This comes as the Fed continues raising interest rates.

We do think this hiking cycle is quite well advanced.

The backdrop of the US economy has been pretty strong and going for a long time.

At some point these high yields will become an impediment for growth.

Higher yields are an opportunity for investors, especially over a longer time horizon."