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VIEW: Friday saw Goldman Sachs note that......>

BONDS: VIEW: Friday saw Goldman Sachs note that they have have revised their
"G10 yield forecasts to align with the ongoing recovery... We expect a sharp
sequential rebound in economic activity in the coming quarter, and believe this
should lead to higher yields across G10. Sovereign bond yields have anticipated
improvement in economic activity, though easy monetary policy, which serves to
reinforce price action in risk assets, works in an opposing direction when it
comes to interest rates, and is on net preventing a significant repricing of
yields. Looking ahead, while we expect G10 central banks to take additional
monetary easing measures, we believe most of these measures, such as forward
guidance or YCC are already being anticipated by markets to an extent, and
therefore the growth-related repricing is likely to dominate... We expect 10y
UST yields to end the year at 1.05%, roughly 40bp above current levels, and end
2021 at 1.45%. For 10y German yields, our YE20 and YE21 projections are -0.25%
and 0.1% respectively."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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