Goldman Sachs: If the rate cut dream shatters, short-term U.S. Treasury yields may face rebound risks

ChainCatcher message, Goldman Sachs economists pointed out in a report that their fundamental judgment on the U.S. economy still supports the core view that "short-term U.S. Treasury yields will decline, and the yield curve will eventually steepen." However, if there is a lack of solid economic data to support expectations for Federal Reserve rate cuts, the market's pricing for rate cuts may continue to weaken in the short term.

"If, in the current environment of high inflation and with economic data not deteriorating enough to prompt the Federal Reserve to cut rates, the market's confidence in the space for rate cuts gradually fades, then as government debt continues to accumulate, the term premium may face greater upward pressure, thereby pushing yields higher."