Productivity Boom Could Send US 30-Year Yield to 6%

The US 30-year yield has room to increase to 6% due to the potential for sustained productivity growth, according to Barclays Capital's head of US rates research.

Anshul Pradhan wrote in a report that markets continue to assume the current neutral rate is cyclical rather than secular.

This assumption means investors believe the Federal Reserve will raise interest rates to combat inflation but view this increase as temporary, not permanent.