Two opposing forces are at play in long-end Treasurys, but higher yields will prevail, says Goldman Sachs. While the Fed continues to buy long-end Treasurys for Twist, improving economics and higher inflation expectations will push yields up. "We think that the upside pressures will ultimately win the day, particularly from early next year onwards," the bank says. It forecasts 10-year Treasurys to yield 2.0% at year-end, and 2.5% at the start of the second quarter next year. The note is down 31/32 recently, yielding 1.868% recently.
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