Benchmark Treasury yields may soon hit a key level on the back of rising inflation expectations and concerns over US fiscal spending, according to T. Rowe Price.

"The 10‑year Treasury yield will test the 5% threshold in the next six months, steepening the yield curve," according to Arif Husain, chief investment officer of fixed-income, who helps oversee about $180 billion of assets at the firm. The fastest path to 5% "would be in the scenario that features shallow Fed rate cuts," he wrote in a note.