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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.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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