Treasury yield comeback is real - Wells Fargo

The recent recovery in treasury yields looks real and the rally could pick up momentum, according to Wells Fargo. 

"We think in the next month, maybe two on the outside, you’ll see the 10-year top 1% and it should be comfortably above that level by the end of the year," Michael Schumacher, head of macro strategy at Wells Fargo, told CNBC’s “Trading Nation” on Tuesday.     

The 10-year Treasury yield rose to 0.954% on June 5 to hit the highest level since March 20. At press time, the yield is seen ta 0.83%, up over 20 basis points on a month-to-date basis. 

Schumacher expects the benchmark yield to rise toward 1% over the next 12 weeks. The bias is higher as the coronavirus pandemic seems to have come under control and major economies are showing signs of life, Schumacher noted.