Odaily Planet Daily reports that Goldman Sachs economists pointed out 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 solid economic data to support expectations of Federal Reserve rate cuts, the market's pricing for rate cuts may continue to weaken in the short term. "If, amid persistently high inflation and economic data that is not yet weak enough to prompt Fed rate cuts, market confidence in the scope for rate cuts gradually fades, then with the continuous accumulation of government debt, term premiums may face greater upward pressure, which in turn could push yields higher." (Jin10)

According to a report by Goldman Sachs economists, their core view on the US economy still supports the idea that the "short-term US bond yields will decline, and the yield curve will eventually steepen." However, if there is a lack of solid economic data to support the expectation of a Fed rate cut, market pricing for rate cuts may continue to weaken in the short term. If in the current scenario of persistently high inflation and economic data not deteriorating enough to prompt a Fed rate cut, market confidence in the space for rate cuts gradually diminishes. As government debt continues to accumulate, term premium may face greater upward pressure, thereby exerting upward pressure on yields. (FX678)

Goldman Sachs: If the rate cut dream shatters, short-term U.S. Treasury yields may face a rebound risk