Goldman Warns Central Bank QE Not Enough for Avalanche of Bonds
- Bond yield curves set to steepen in the U.S. on issuance
- More buying from the Bank of England unlikely to offset deluge
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In the epic battle between the trillions of dollars of debt supply needed to finance soaring government deficits, and central banks’ bond buying, the latter is losing, according to Goldman Sachs Group Inc.
That will lead to higher long-term borrowing costs, particularly in the U.S., the bank said, as it examined whether quantitative-easing programs can buy enough government bonds to keep yields in check.