Australia’s largest pension fund warned: 10-year U.S. bond interest rates fear to rise to 3%

Foreign media reports, the U.S. debt yield soaring has caused global stock market shock, Australia’s largest pension fund AustralianSuper Pty, head of asset allocation Carl Astorri latest warning, is expected to continue to rise to about 3 percent of the U.S. 10-year yield, when the fear of endangering U.S. economic growth, and forced the U.S. Federal Reserve to respond to the debt interest rate surge.

Astorri, head of asset allocation at AustralianSuper Pty, which manages A$210 billion in assets, believes U.S. Treasury rates will keep rising until they cause some damage and pain for borrowers, “For now, we assume we are at least in the standard – maybe even overheating or boom – phase of the economic cycle. Inflationary phase,” and revealed that he has been cutting government bonds, as well as shifting to value stocks such as banks and offloading technology stocks such as Netflix.

Astorri said the 10-year U.S. bond rate will rise above 2.5 percent before it becomes attractive again.