FXStreet reports that economists at Charles Schwab expect higher yields due to sticky inflation rather than Fed’s tapering.

“Despite concerns that the Fed is pulling back on its bond-buying program and may raise rates sooner than expected, policy is still accommodative. Growth and inflation expectations may have peaked, but are likely to settle at an above-average level. Higher growth and inflation expectations are a catalyst for higher long-term yields.”

“We see the potential for yields to move higher, due more to inflation becoming ‘stickier’ versus the Fed reducing the pace of its bond buying program.”