According to a report by Jin Ten Data, Goldman Sachs economists pointed out that the fundamental assessment of the U.S. economy supports a decrease in short-term U.S. Treasury yields, with the yield curve ultimately tending to steepen.
However, if there is a lack of economic data to support expectations for Federal Reserve rate cuts, market pricing for cuts may weaken.
Current inflation remains high, and economic data is not weak enough to prompt the Federal Reserve to cut interest rates, leading to a gradual loss of market confidence in the space for rate cuts.
With the accumulation of government debt, the term premium may rise, exerting upward pressure on yields.