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Goldman Sachs: Bearish Sentiment Raises Odds Of A Reversal

US TSYS

Goldman Sachs write “the recent bond market selloff has coincided with increasingly bearish sentiment on duration.”

  • “A reversal would need a catalyst. If our economists’ expectation that the strong labor market and inflation data come down to one-off ‘January effects’ proves true, we could envision at least a brief reversion in yields.”
  • “As a result, we believe investors should pare their short exposures (or potentially add longs) on a tactical basis; the yield declines in the latter part of last week appear to be in line with our observations here.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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