BMO's Davis Says 30-Year Treasury Yields Will Hit 6%

• 30-year US Treasury yields are expected to inevitably cross 6%, possibly in October, due to current market focus on interest rates and global trends.
• A Fed and Treasury intervention (quantitative easing) is anticipated once yields hit 6%, aiming to stabilize the market and prevent a 'debt trap' where rates exceed growth.
• This intervention would likely weaken the US dollar, but strong underlying US growth could attract continued investment, leading to a potential market reversal for 6-12 months.

Earl Davis of BMO Global Asset Management predicts 30-year Treasury yields will inevitably cross 6%, potentially this month, driven by global factors and market focus on interest rates. He expects a Fed/Treasury intervention (QE) once 6% is hit, which would weaken the dollar but could be offset by strong US growth, leading to a market reversal for 6-12 months.