Bond yields could hit 6% as the Fed is going to keep hiking rates until something breaks, research firm says

• Key bond yields are likely headed to 6% as the Fed will keep hiking interest rates, TS Lombard said.
• The research firm pointed to the hot labor market, which could stoke inflation.
• Yields on the 10-year US Treasury have notched a 16-year-high in recent weeks

The 10-year US Treasury yield is headed to 6%, as the Federal Reserve is likely to raise rates until something breaks in the economy, according to research firm TS Lombard.

"Is a 6.5% funds rate and a 6% on the 10Y on its way? Very likely," the firm's chief US economist Steven Blitz wrote in a note on Friday, implying a more than 100 basis-point increase in the Fed's benchmark rate and the 10-year Treasury yield.