Goldman Says Cooling Inflation Is Clearest Route to Lower 5.25% US Yields
Updated
Updated · Yahoo Finance · Aug 21
Goldman Says Cooling Inflation Is Clearest Route to Lower 5.25% US Yields
3 articles · Updated · Yahoo Finance · Aug 21
Summary
Goldman Sachs said benign inflation data, not Treasury buybacks, offers the clearest path to bringing down elevated US bond yields.
5.25% 30-year Treasury yields reflect investor concern over inflation, a growing federal debt burden and competition from heavy corporate bond issuance.
Treasury officials are still trying to ease borrowing costs: Scott Bessent said buybacks could expand further after the department moved to at least double longer-dated debt repurchases.
Goldman called those buyback effects relatively short-lived unless softer retail sales, weaker employment and subdued July core inflation build confidence that the Fed can stay on hold.