Goldman Says Take Profit on `Top Trade' Call to Short Treasuries
- Bank ends recommendation, but maintains 10-year yield forecast
- ‘The near-term outlook for U.S. duration is less certain’
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Goldman Sachs has closed one of its “Top Trade” recommendations for 2018: shorting Treasuries.
The bank suggested the trade when yields on 10-year securities were at 2.36 percent in November, betting that the Federal Reserve would be more hawkish than the market expected. That panned out, helping push 10-year yields up to touch 3.12 percent last month, before a rally in the market pulled the rate back to around 2.84 percent now. Goldman maintains its forecast for 3.25 percent by year-end.