Goldman Again Boosts 2022 Two-Year Treasury Yield Outlook

  • Strategists see 10-Year bond yield at 2.25% by year-end
  • Two-year, 10-year Treasury yield curve will be flat by 2023
We Still Like Stocks Over Bonds: Wells Fargo
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It’s only early February, and Goldman Sachs Group Inc. has already raised its forecast for short-end Treasury note yields twice this year. The moves underscore how fast investors have been repositioning for Federal Reserve’s rate hikes.

Strategists led by Praveen Korapaty now predict two-year yields at 1.9% for the end of 2022 -- up from a already raised forecast in January of 1.35%, which is roughly the current rate. While last month they kept their estimate for 10-year rates at 2%, the analysts now see the benchmark yield at 2.25%. The rates on both maturities will climb to 2.45% in 2023, according to them, resulting in a flat curve.