According to a report by Jinshi Data, Goldman Sachs economists indicated that the fundamental assessment of the U.S. economy supports a decline 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 the Federal Reserve to cut interest rates, market pricing for rate 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 decline in market confidence regarding the space for rate cuts.
As a result of the accumulation of government debt, the term premium may rise, exerting upward pressure on yields.