Goldman Sachs raises 10-year Treasury yield target to 1.90%

Goldman Sachs on Thursday raised its Treasury yield target, forecasting the 10-year note rate to hit 1.90% by the end of the year amid a quickening bond-market selloff. The benchmark maturity is up 6.6 basis points to 1.536%. "The already material repricing in global yields will, in our view, extend after some consolidation, driven by a strong acceleration in the global recovery over the coming quarters," said Goldman Sachs strategists led by Praveen Korapaty. The rise in yields over the past few weeks has led banks across Wall Street to repeatedly lift their year-end Treasury yield targets. The combination of fiscal relief and vaccine rollouts have fanned inflation fears, and raised doubts among investors over whether Federal Reserve can stick to its accommodative policy stance for as long as it has signaled.

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