iCapital Raises 10-Year Treasury Yield Forecast to 5.3% Amid Oil Price Volatility

iCapital global investment strategist Dan Suzuki has increased the firm's 10-year Treasury yield forecast to a range of 4.5% to 5.3%, noting that crude oil prices are now a more significant driver of yields than Federal Reserve projections. Suzuki stated that the impact on equity markets depends on the underlying cause of yield movements; while cooling yields driven by reduced geopolitical risk could support a stock rally, yields rising due to economic slowdown fears would be detrimental. To hedge against potential volatility, iCapital suggests a barbell strategy involving financials and healthcare, alongside private infrastructure and cash.