MetLife, the biggest life insurer in the United States announced that they believe benchmark 10-year Treasury yields are more than a decade away from returning to their long-run average according to Susanne Walker Barton of Bloomberg.
Normalized levels are 4.5% but the CEO of MetLife, Steve Kandarian doesn't believe those levels will be reached for another 11 years. This is a stark contrast to what the insurer had previously predicted. They initially believed it would only take three years, but MetLife joins a long list of bond market prognosticators who believe yields will remain low.
According to data compiled by Bloomberg, the "benchmark for pricing everything from auto loans to mortgages -- have yielded about 4.7 percent." The Federal Reserve is expected to raise interest rates for the first time in almost a decade next month but even those 10-year yield predictions of 3.06 percent by year-end will come in lower at around 2.3%.
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