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Goldman Sachs: Softer Payroll Details Reaffirm Case For Rangebound Yields

US TSYS

Goldman Sachs write “even after last week’s yield declines, our positioning indicators continue to show bearish positioning on net, albeit at less extreme levels than a couple of weeks ago.”

  • “From here we expect yields to remain rangebound ahead of CPI and the March FOMC meeting.”
  • “Whilst an upside surprise in CPI may revive concerns around sticky inflation, some of this right tail risk has already been tempered by the softer jobs report and alternative labor market indicators.”
  • “And if inflation does show clear signs of deceleration as we expect (in both CPI and PPI terms), this should solidify market expectations of a Q2 cut and potentially raise the odds of the left tail being priced back in.”
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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