Treasuries Defy Goldman Call as Returns Beat German, U.K. Bonds
- Investment bank sees Fed interest-rate increase in December
- Futures market gives 32 percent odds of liftoff in 2015
This article is for subscribers only.
Treasuries have outperformed German and U.K. government bonds in October, defying Goldman Sachs Group Inc., which stuck to its call that the U.S. bonds were expensive, saying investors underestimated the outlook for inflation.
If the course continues, this will be Treasuries’ first back-to-back monthly gain since January, according to Bloomberg World Bond Indexes. Despite the rally, Treasuries remained near their cheapest level in eight years, data compiled by Bloomberg showed, even as traders pared bets that the Federal Reserve will increase interest rates this year. Yields climbed Tuesday before Fed Bank of New York President William Dudley and Governor Jerome Powell speak at a conference.