Surging Debt Supply to Boost Global Yields, Goldman Sachs Says
- Fiscal shift, end to central bank support raise risks: Goldman
- US medium-term yields may rise 60 basis points in 10 years
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Increased government borrowing and central bank efforts to reduce balance sheets will boost debt yields, according to Goldman Sachs Group.
An analysis of major developed bond markets shows that, outside Japan, each increase of one percentage point in the public debt to GDP ratio is likely to boost medium-term yields by at least two basis points this decade, Bill Zu, vice president for interest-rates strategy at Goldman Sachs, wrote in a report Wednesday.