Bill Gross says the surging 10-year Treasury yield could test 5% in the short term

Widely followed investor Bill Gross believes Treasury yields have the potential to shoot even higher in the short run.

“I think we’re going to go to 5[%],” Gross said on CNBC’s “Last Call” on Tuesday, referring to the 10-year Treasury yield. “The market certainly is oversold at the moment in anticipation of Treasury supplies, in anticipation of higher for longer in terms of the Fed.”