6 Jun 2013
Flash: Concerns over rising US bond yields overdone – Goldman Sachs
FXstreet.com (Barcelona) - Concerns about rising bond yields and a Fed tapering of bond purchases have dominated the last two weeks.
According to the Economics Research Team at Goldman Sachs, “Investors have worried in particular that the shifts in the bond market will derail the positive trend in US and global equity markets, however we think those anxieties are overdone.”
Despite the recent sharp rise in yields, they are not much higher than earlier in the year: the sharp drop in yields in March and April looks more unusual. Nor do we think the Fed’s approach has changed: with US inflation below target and the growth picture still moderate, we see little sign that the Fed will move away from its supportive monetary stance.
According to the Economics Research Team at Goldman Sachs, “Investors have worried in particular that the shifts in the bond market will derail the positive trend in US and global equity markets, however we think those anxieties are overdone.”
Despite the recent sharp rise in yields, they are not much higher than earlier in the year: the sharp drop in yields in March and April looks more unusual. Nor do we think the Fed’s approach has changed: with US inflation below target and the growth picture still moderate, we see little sign that the Fed will move away from its supportive monetary stance.