On Wednesday Goldman Sachs cut its bond.......>

BONDS: On Wednesday Goldman Sachs cut its bond yield forecasts across the

entirety of the G10, based on MonPol & inflation dynamics as well as an outlook

for a shallower recovery in U.S. term premium.

- The bank maintained that the direction of travel is still higher for G10

yields.

- 10-Year Tsys: End-'18 3.10% (prev. 3.25%), cycle peak lowered to 3.4% (prev.

3.6%). Fed call unch., looking for 6 further hikes, at a rate of 1 per quarter

until the target range reaches 3.25% to 3.50%.

- 10-Year JGB yields: End-'18 0.12%. In Japan, "recent forward guidance from the

BoJ effectively rules out further 'tweaks' to monetary policy, at least until

the effects of a consumption tax hike begin to dwindle."