Goldman: The bond sell-off will continue

Goldman: The bond sell-off will continue

There are three key reasons why the bond sell-off will continue, according to Goldman Sachs’ analyst Francesco Garzarelli.

The bond sell-off, which started at the end of last week and has continued into this week, sparked panic in global markets. The sell-off spread to high yield equities, which have become bond proxies as yields have plummeted to record low levels.

The bond sell-off will continue

Goldman Sachs has some of the most bearish views on Wall Street about bond yields. The bank expects the US 10-year Treasury yield to reach 2% by the beginning of 2017, 25 to 35 bps above the forwards over this horizon. The corresponding numbers for German yields and JGBs...