Goldman Sees Fed Hikes Pushing 2- to 30-Year Spread Toward Zero
- Quarterly rate increases expected after a move in December
- Treasury bond yields ‘anchored’ due to economic fundamentals
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Goldman Sachs Group Inc. says investors should position for continued flattening of the Treasuries yield curve into 2019 as the Federal Reserve will keep hiking interest rates.
Analysts including Charles Himmelberg recommend wagering that the gap between 2- and 30-year Treasury yields will narrow, predicting it will move from about 50 basis points now toward zero next year. The view was among those detailed in a note on Goldman’s top market themes for 2019, released Thursday.