Goldman Says Slowing Inflation Is Best Path to Lower US Yields

Goldman Sachs argues that efforts to curb rising Treasury borrowing costs are secondary to cooling inflation as the main driver of lower bond yields. The note implies yields will stay elevated until inflation moderates, rather than policy action alone. Overall, it’s a directional macro/rates view without a specific new policy or data release.

Analysis

Goldman Sachs argues that efforts to curb rising Treasury borrowing costs are secondary to cooling inflation as the main driver of lower bond yields. The note implies yields will stay elevated until inflation moderates, rather than policy action alone. Overall, it’s a directional macro/rates view without a specific new policy or data release.