Treasury Yields Could Hit 1% by Year End

From CNBC:

U.S. 10-year Treasury yields will hit 1 percent by the end of the year, as the so-called "fiscal cliff" has investors running to the safety of government debt, several market watchers told CNBC on Monday.

Gerard Minack, Asset Manager at Morgan Stanley, got the bearish ball rolling on CNBC Asia's "Squawk Box." He said investor anxiety about the tax increases and spending cuts which will happen at the start of next year, could be the catalyst for a U.S. recession and a fresh plunge in yields.

"We know exactly when the next U.S. recession is going to start. It'll start January 1, 2013," said Minack. "We see a very small window from ... (election day) to December 31 to sort that mess out. It's going to make last year's debt ceiling debate look like a walk in the park."

The debt-ceiling debate was a major risk event in the U.S. last year which triggered a plunge in stock markets....

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Link: http://www.cnbc.com/id/47942700