According to TechFlow from ShenChao, on May 12th, reported by Jin10 Data, Goldman Sachs economists stated in a report that their fundamental assessment of the U.S. economy still supports the core view that "short-term U.S. Treasury yields will decline, and the yield curve will eventually steepen." However, without concrete economic data to support expectations of Federal Reserve rate cuts, the market pricing for rate cuts may continue to weaken in the short term.

If inflation remains high and economic data is not sufficiently weak to justify Federal Reserve rate cuts, market confidence in the scope for rate cuts will gradually fade. Consequently, as government debt continues to accumulate, the term premium may face greater upward pressure, which in turn could push yields higher.

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<p>According to TechFlow, on May 12, reported by Jin10 Data, Goldman Sachs economists pointed out in a report that their fundamental judgment on the U.S. economy still supports the core view that "short-term U.S. Treasury yields will decline, and the yield curve will eventually steepen." However, without conclusive economic data to support expectations of a Federal Reserve rate cut, the market's pricing for rate cuts may continue to weaken in the short term.</p>
<p>If inflation remains high and economic data is not poor enough to prompt a Federal Reserve rate cut, market confidence in the room for rate cuts will gradually fade. As government debt continues to accumulate, the term premium may face greater upward pressure, thereby pushing yields higher.</p>
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Goldman Sachs: If the rate cut dream shatters, US Treasury yields may face a rebound risk in the short term