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City, unlucky to loose 3-0 at Leeds in their opening fixture, produced a devastating display against Sir Bobby Robson's Newcastle who are tipped as outsiders for the title.
Indeed, with better finishing, City would have won by an even wider margin as they were guilty of some terrible finishing.
Newcastle's Keiron Dyer admitted City could have been four of 5-0 up at the break, such was their dominance.
"City will do extremely well this season and will have no problems staying up," explained midfield man Dyer.
Keegan was also upbeat following a performance which showed City can compete with the top teams in the Premiership.
"Everyone is tipping Newcastle for a top four finish while our aim is top six. If we maintain that form then hopefully we won't be too far away," he declared.
Yet City could later have been punished for their wayward finishing as Newcastle had some great chances to draw level with Dyer the main culprit.
The lively Darren Huckerby squandered three great chances before finally giving City the lead in the 36th minute with what turned out to be the matchwinning goal.
Niclas Jensen's drive was well saved by Shay Given only for the rebound to ricochet into the path of Huckerby to head home from a couple of yards.
City were still celebrating when Newcastle ought to have drawn level when Dyer blazed wide of an open goal.
Huckerby could have sealed victory late in the half when he had three further chances in an eight-minute spell, while Dyer came close to an equaliser.
Dyer wasted another great chance early in the second half blazing over when through on goal after latching on to a dreadful pass from Sylvain Distin.
The second half also saw Jermaine Jenas, Alan Shearer and Dyer all go close to grabbing an equaliser as the Magpies produced a far better showing and could easily have drawn level