Goldman Lowers Treasury Yield Forecasts on Rising Fed Cut Bet

Goldman Sachs Group Inc. has lowered its forecasts for US Treasury yields, pointing to the increased likelihood that the Federal Reserve will cut interest rates sooner than previously expected.

Strategists including George Cole wrote in a July 3 report that they expect two- and 10-year yields to end the year at 3.45% and 4.20%, respectively, part of a lowering of yield forecasts at every major maturity. They had previously expected those benchmark yields to finish the year at 3.85% and 4.50%.