Goldman Sachs: US fiscal discipline unlikely, steepening yield curve expected

Remarks from Goldman Sachs’ Ashok Varadhan, co-head of global banking and markets expects the US Treasuries curve to steepen in the long term:

  • “Fiscal spending has not abated. It’s strange for us to be spending this much” when employment is high,
  • “It doesn’t feel like we’re going to see fiscal discipline any time soon. … It’s hard to see long-term rates coming down meaningfully,” 
  • “And so our base case on the trading desk is we expect a more normalized yield curve, a steeper yield curve, but really more with normalized and lower rates in the front end and not a lot of relief in the back end.”

Info via Reuters. 

us ppi

This article was written by Eamonn Sheridan at Source