Despite expected Fed inaction next year, a strong economy will lift interest rates, the firm forecasts.
Tag: 10-Year Treasury
Then, the 3-month Treasury could dip below the 10-year, and dispel this dreaded recession portent.
The spread between BBB corporates and 10-year Treasuries is shrinking.
As benchmark 10-year Treasury finally rises over 3.2%, equity investors fear growth-choking interest rates are en route.
Goldman strategist notes rise of short-term rates and projects a 3.6% 10-year Treasury.
The firm points to stock rally and lower junk yields as key to New Year market sentiment.