Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Goldman Sachs Flips Bearish on US Treasury Yields, Forecasts Fed Rate Cuts Sooner Than Expected: Report

Goldman Sachs Flips Bearish on US Treasury Yields, Forecasts Fed Rate Cuts Sooner Than Expected: Report

2025/07/06 16:00
By:

Market strategists at banking giant Goldman Sachs have reportedly lowered their forecasts for US Treasury yields on the basis that the Federal Reserve will most likely begin cutting interest rates sooner than expected.

In a report seen by Bloomberg , analysts, including George Cole, say that they’re lowering their end-of-year targets for yields and are revising their expectations for Fed cuts in 2025.

The analysts say that they see the two and 10-year yields ending 2025 at 3.45% and 4.20%, respectively, dropping from their initial call of 3.85% and 4.50%.

Meanwhile, Goldman’s economists originally believed that the Fed would only achieve one rate cut near the end of the year, but are now expecting cuts in September, October and December.

Even though strong labor numbers challenged the analysts’ forecast, the Goldman analysts are standing firm on their call, noting that the strong data was distorted by the outsized figure of government hiring and a decline in the labor participation rate.

“A benign path to lower short-term rates can dilute a potential source of additional fiscal risk premia and improve the economic appeal [of owning Treasuries.] We see scope for deeper cuts to support lower yields than previously envisioned.”

The Financial Times reports that $11 billion in long-term bond funds focused on government and corporate debt have been dumped in just three months.

The Q2 2025 sell-off ends a three-year run of net inflows into long-term US bond funds, with the previous sell-off happening back in the second quarter of 2022.

Goldman Sachs Flips Bearish on US Treasury Yields, Forecasts Fed Rate Cuts Sooner Than Expected: Report image 0 Source: The Financial Times

PGIM’s top fixed-income strategist, Robert Tipp, says the shift shows investors are wary of rising inflation and increasing government debt.

“It’s a volatile environment, with inflation still above target and heavy government supply as far as the eye can see. This is driving a skittishness about the long end of the yield curve, and a general uneasiness.”

Generated Image: Midjourney

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

From Tenant to Broker: The Crypto Business in Trump Tower

Living below the seat of power, let the elevator of wealth go straight to your own office.

深潮2025/09/10 03:30
From Tenant to Broker: The Crypto Business in Trump Tower

"Seizing Power" from the Federal Reserve: US Treasury Secretary Calls for Comprehensive Review of the Fed

Besant's opinion piece appears to indicate that the Trump administration's criticism of the Federal Reserve is escalating—not only demanding interest rate cuts, but also beginning to question the Fed's overall operational model and its foundation as an independent institution.

深潮2025/09/10 03:29

Breaking Down the Walled Garden: How Does Ondo Global Market Bring 100+ US Stocks On-Chain?

Make financial markets truly globalized, democratized, and programmable.

深潮2025/09/10 03:07
Breaking Down the Walled Garden: How Does Ondo Global Market Bring 100+ US Stocks On-Chain?