Goldman Sachs Asset Management predicts Treasury 10-year yields may climb to the highest level in four years as the Federal Reserve ends its bond-buying program and weighs the first interest-rate increase since 2006.

The 10-year yield may rise as high as 4 percent over 12 months, the most since April 2010, as the end of so-called quantitative easing adds more interest-rate risk to the market, said Philip Moffitt, the Sydney-based head of fixed income in Asia-Pacific at Goldman Sachs Asset, which has $935 billion in assets under management globally. The yield closed at 2.56 percent yesterday and touched 2.65 percent on Sept. 19, the highest since July 7.

The Fed is on course to end its bond purchase program next month after tapering monthly buying to $15 billion on Sept. 17 in a seventh consecutive cut. While declining to specify how soon after the federal funds rate will rise, Chair Janet Yellen said policy makers will first increase the benchmark and then cease reinvesting maturing debt from its record $4.45 trillion balance sheet, reducing holdings in a "gradual and predictable manner."