Yield curve 'manna from heaven' for bull market, says Schulte Research’s Paul Schulte

Paul Schulte, founder and editor of Schulte Research, believes the yield curve is 'manna from heaven' for the bull market, implying the steep curve came at the time that it was needed.

“We need a steep yield curve to allow the banks to resume profitability to get the financial system working again – and this is what the Fed has wanted; we need to get yields back to people who are retiring and this causes a bit of steep to come out of the access in every asset market all the better. Therefore, we are going to see some continuation of a pullback but these steep yield curves, this is ‘manna from heaven’ for a bull market,” Paul said in an interview with CNBC-TV18.

The US 10-year treasury note yield rose to its highest in 14 months on Thursday as investors expect higher inflation as the economic recovery in that country gathers steam. The movement comes after the US Federal Reserve lifted the inflation and growth forecasts but reiterated its commitment to keep the benchmark interest rates low until at least 2024.