Bond yields expected to rise

Bank of America Merrill Lynch has raised its forecast on 10-year U.S. Treasury yields following positive jobs data on Friday.

The firm expects yields to rise to 3% by the end of the year, up from its June forecast of 2.4%.

On Friday, the 10-year note rose 22 basis points to 2.73%. It was the biggest one-day increase in nearly two years.

And Goldman Sachs now expects yields to hit 4% by 2016.

Last July, the yield on 10-year Treasuries reached a record low, falling below 1.4%.

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