Goldman Sachs Calls Bonds Expensive as Morgan Stanley Is Bullish
- Goldman says U.S. 10-year yield should be more than 2.1%
- Morgan Stanley predicts yield will fall to 1.45% by September
This article is for subscribers only.
Goldman Sachs Group Inc. called Treasuries overpriced and said the Federal Reserve is poised to raise interest rates, clashing with Morgan Stanley’s forecast for a rally.
Ten-year Treasuries “look expensive,” based on Goldman’s assessment of a fair value, Francesco Garzarelli, the London-based co-head of fixed-income strategy, wrote in a report Thursday. Yields should be higher than 2.10 percent, based on the models the firm uses to analyze bonds, versus 1.85 percent Friday.