Goldman Lifts Treasury Yield Call as Washington Power Shifts
- Previous forecast for 10-year rate assumed divided government
- New prediction reflects ‘broader reflationary environment’
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Goldman Sachs Group Inc. boosted its year-end forecast for the 10-year Treasury yield -- which has risen sharply this month -- to reflect the new balance of power in Washington.
Last week’s Georgia runoffs flipped the Senate, giving Democrats unified control of the federal government when President-elect Joe Biden takes office next week, which “should translate into a greater fiscal impulse than under our previous divided government baseline,” strategists Praveen Korapaty, William Marshall and Avisha Thakkar said in a note.