Goldman and Citigroup Divided on Whether Bond Rout Will Persist
- Garzarelli of Goldman sees Treasury yields at 2% by early 2017
- Aviva, Aberdeen join Citigroup in seeing no extended losses
People Getting More Cautious Holding Treasuries: Diebel
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Goldman Sachs Group Inc. is finding itself in a minority on the bond-market selloff. The U.S. investment bank sees the slide continuing, while rivals from Citigroup Inc. to Aviva Investors are betting the losses won’t turn into a rout.
Goldman Sachs says U.S. Treasury yields had fallen too far, too fast and that global quantitative easing is losing its potency. Those on the opposite side of the argument point out that the world’s richest economies remain in the doldrums, and there’s every reason to expect policy makers to pump in more bond-boosting stimulus.