Goldman Sachs ups US 10-year Treasury yields forecasts to 3.25% by 2018-end
|In its latest research note, analysts at Goldman Sachs raised their benchmark 10-year government bond yield forecasts for the US, Germany and the UK.
Key Points:
US yields now seen at 3.25% by year-end, previous forecast 3%
German bund yields to rise to 1%, previous forecast 0.8%
UK gilts seen at 2%, previous forecast 1.8%
Peak level for US yields still seen in 3.5% - 3.75% area
Bond valuations are "still fairly stretched"
US 10-year yields sitting at 3.7% would be "fair value" at year-end using their economic forecasts
Diminishing "subsidy" from central bank stimulus will send term premiums higher.
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