Wall Street Banks Slash Yield Forecasts on Gloomy Growth Views

Goldman Sachs Group Inc. joined a growing number of Wall Street banks lowering their forecasts for Treasury yields in the face of slowing global economic growth and faltering bets on tighter monetary policy.

The U.S. bank said 10-year yields may have peaked for this cycle, cutting its year-end projection by 50 basis points to 3 percent. JPMorgan Chase & Co. and Bank of America Merrill Lynch also trimmed their forecasts this week on expectations of fewer Federal Reserve interest-rate increases, while the bonds have regained haven status for BlackRock Inc. following last year’s slump that drove yields to a seven-year high.