On Friday, I wrote about how Fed hawks are pointing to financial risk as the reason for tapering rather than the economy or inflation.

Now there is more evidence. Rick Rieder, the chief investment officer for fundamental fixed-income at Blackrock (the world’s largest asset manager) was on Bloomberg TV saying “QE is too big. You’ve got to taper down QE, it’s created this tremendous distortion in interest rates.”

They see 10-year yields moving up to 3% to 3.25% from 2.86% today.

10-year yields daily