Goldman Sachs Group has cut its forecast for U.S. Treasury yields, pointing to an increased likelihood that the Federal Reserve will cut interest rates sooner than previously expected. Strategists, including George Cole, wrote in a July 3 note that they expect yields on two-year and 10-year Treasuries to fall to 3.45% and 4.20%, respectively, after expecting the two benchmarks to end the year at 3.85% and 4.50%, respectively. Before that, Goldman Sachs economists this week...
U.S. short-term interest rate futures rose as Federal Reserve Governor Paul Waller suggested the risk of higher inflation was too low, reflecting increased bets on further rate cuts by the central bank.