LONDON: Goldman Sachs has cut its end-2021 forecast for US and German bond yields, now seeing the former closing the year at 1.6% instead of a previous expectation of 1.9%.

The US 10-year Treasury yield is currently around 1.3%.

In a note sent late on Friday the bank also said it had trimmed its forecast for German 10-year Bund yields to minus 0.15% from the previous 0% estimate.

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Goldman Sachs said "concerns currently weighing on yields should fade in the months ahead, allowing for some normalization in yields amid continued slack absorption, although it may take some time for markets to revisit our prior forecasts given the coming deceleration in growth and inflation."