Goldman Mark Up 10-Year Tsy & Bund Yield Calls

Thursday saw Goldman Sachs note that "the already material repricing in global yields will, in our view, extend after some consolidation, driven by a strong acceleration in the global recovery over the coming quarters. We have revised our G10 yield forecasts accordingly, and now see 10-Year U.S. Tsys at 1.9% and 10-Year bunds at 0% by year-end. We expect the 10-Year U.S. Tsy-bund differential to widen to about 190bp by the end of 2Q21, and stabilize at those levels through the remainder of the year. We expect to see steeper curves, reflecting further repricing of belly and longer-term forwards, while G4 yields inside of the 5-Year point are likely to have somewhat more limited room to sell off and are more likely to end the year at or below current forwards. In the U.S., the combination of an on-hold Fed, strong realized inflation, and a substantial reduction in slack can boost 10-Year breakevens to 2.4-2.45%. We also see a role for higher real yields in contributing to the selloff, but year-to-date moves have brought them substantially closer to more "normal" levels in many other markets."