Goldman Yield Calls Fall Below Street as Central Banks Damp Rout
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The end of a six-year, worldwide rally in the bond market may be a little less painful than Goldman Sachs Group Inc. thought.
The New York-based investment bank this week cut its year-end forecasts for how much benchmark government borrowing rates will rise across the developed world. Because bond prices fall as yields rise, that limits potential losses in a market that’s seen yields plunge to record lows since 2008. Where before Goldman’s yield forecasts were generally above the average estimates in a Bloomberg survey, they’ve now fallen below.