Goldman Sachs cuts 10-year US Treasury yields forecast to 1.6% by end-2021 – Reuters

Analysts at Goldman Sachs slashed its 2021 forecast for US Treasury yields, expecting the 10-year rates at 1.6% instead of a previous expectation of 1.9%, per Reuters.

Key quotes

“It had trimmed its forecast for German 10-year Bund yields to minus 0.15% from the previous 0% estimate.”

"Concerns currently weighing on yields should fade in the months ahead, allowing for some normalization in yields amid continued slack absorption, although it may take some time for markets to revisit our prior forecasts given the coming deceleration in growth and inflation."

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