Franklin Templeton's chief investment officer, Sonal Desai, has suggested that 10-year Treasury yields may increase to 5% or higher due to the U.S. government's need to address a large deficit.

Desai stated in a recent interview in Tokyo that yields between 4.5% and 5% are a reasonable expectation. Desai also mentioned that if the U.S. deficit grows significantly, benchmark U.S. yields could exceed 5%. This viewpoint is in line with predictions from major financial institutions such as JPMorgan and T. Rowe Price, indicating a consensus on the potential for rising Treasury yields as government borrowing increases.