Goldman Sachs: If Rate Cut Dream Shattered, Short-Term Treasury Yields May Face Rebound Risk

BlockBeats News, May 12th: In a report, Goldman Sachs economists pointed out that their fundamental assessment of the U.S. economy still supports the core view that "short-term U.S. bond yields will decline, and the yield curve will eventually steepen." However, if there is a lack of conclusive economic data to support the Fed's rate cut expectations, the market's pricing of rate cuts may continue to weaken in the short term. "If in the current environment of stubbornly high inflation and economic data has not deteriorated enough to warrant a Fed rate cut, market confidence in the space for rate cuts will gradually diminish. As government debt continues to accumulate, term premiums may face greater upward pressure, thereby exerting an upward pressure on yields." (FXStreet)