KKR lifts its 10-year Treasury yield forecast to 5.1% for 2026, citing expectations for further Federal Reserve rate hikes and a delayed return to the 2% inflation target by 2029.
KKR raised its Treasury yield forecast, reflecting a macro view rather than a company-specific event, so the stock impact is neutral.
Private equity giant KKR has adjusted its macroeconomic outlook, projecting the 10-year U.S. Treasury yield to reach 5.1% by year-end. The firm anticipates the Federal Reserve will maintain elevated interest rates through 2029 to combat persistent inflation, signaling a departure from previous expectations of a swifter monetary easing cycle.
KKR raised its forecast due to concerns that inflation remains sticky and that the Federal Reserve will need to keep interest rates elevated for a longer duration than previously anticipated.