'10-year-Yield Will Go Below 1%,' Bessemer Trust's Patterson Said on CNBC

The U.S. Treasury 10-year bond is at an all-time low, yielding 1.3649% on Wednesday, after falling below 1.4% for the first time in history.
By Michael Sheetz ,

NEW YORK (TheStreet) -- Fearful of a global or domestic recession, investors continue to buy U.S. 10-year bonds and push the yield lower.

Rebecca Patterson, Chief Investment Officer of Bessemer Trust, believes the current decline will continue.

"The U.S. 10-year, I don't know when, but I think we are likely to break 1%," Patterson said on CNBC's "Squawk Box" on Wednesday morning.

It's no longer a question of if the 10-year will go below 1% but of when to Patterson. She believes that the greater consequence of Brexit is the current "flight to safety" by U.S. investors. As for when the dip below 1% will happen, Patterson thinks it could be as soon as two years from now, when she believed we will get the next U.S. recession. 

The current global market defies traditional investment wisdom, Patterson says.

"You [usually] don't want to buy bonds here, you don't buy expensive assets, you sell them," Patterson added.

The post-Brexit world means that "dynamics have changed." Patterson sees the Bank of England, the Bank of Japan, and the European Central Bank all easing their interest rates within a month, or by fall at the latest.

"This is more of a global dynamic than a U.S. cyclical dynamic," Patterson noted.

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