Goldman Sachs lowers U.S 10-year Treasury yield forecast

LONDON (Reuters) - Goldman Sachs has lowered its forecast on where U.S. 10-year Treasury yields will end the year to 3.10 pct from 3.25 pct previously.

This is largely down to an expected reduction in the so-called 'term premium', the premium investors demand for holding a bond beyond interest rate and inflation expectations over a period of time, Goldman analysts said in a note on Wednesday.

"However, the direction of travel is still higher yields across the G10 (countries)," they added.

The yield on 10-year Treasuries was at 2.83 percent on Wednesday.

(Reporting by Abhinav Ramnarayan; Editing by Jamie McGeever)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• iShares 20+ Year Treasury Bond ETF (TLT) call put ratio 1.3 calls to 1 put on 124K contracts
• Is Treasury selloff a major issue for stock market bulls?
• Clean Energy Fuels (CLNE) PT Lowered to $2.50 at Raymond James