TREE NEWS reports: Goldman Sachs expects the 10-year US Treasury yield to fall to 4.6% by the end of 2027, below consensus, as Treasuries become more attractive as a hedging tool and inflation stays moderate. Strategists including London-based Kamakshya Trivedi wrote that Treasuries are now “cheap” with appealing yields, but rising yields are creating “stress,” suggesting high levels may not be sustainable.
Goldman Sachs forecasts 10-year US Treasury yield at 4.6% by end-2027
Goldman's below-consensus call leans on Treasuries regaining their hedging role and contained inflation, a view that implicitly questions whether current yield levels reflect fundamentals or stress. That distinction matters most for rate-sensitive corners of crypto and tokenized RWA markets, where Treasury yields anchor collateral and discount-rate assumptions. The open question is whether the hedging-demand thesis holds if inflation proves stickier than expected, since the same strategists flag that elevated yields are themselves a source of stress.
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