LONDON, Jan 8 (Reuters) - Analysts at Goldman Sachs (NYSE:GS) have revised down their forecasts for government bond yields in major economies, especially in the United States and Canada to reflect a weakening economic outlook, the U.S. investment bank said on Tuesday.
They now see U.S. 10-year Treasury yields ending 2019 at 3 percent US10YT=RR , some 50 basis points below their previous forecast. Ten-year Treasury yields are trading at around 2.69 percent.
"We now believe 10-year yields may have peaked for this cycle, though we expect them to head higher, towards 3 percent, by year end," the note from Goldman Sachs said.
The note added that 10-year bond yields in Canada CA10YT=RR are likely to end 2019 at 2.40 percent, down 60 bps from the previous forecast.
In the euro zone, Goldman Sachs analysts said they expected 10-year bond yields in the bloc's benchmark bond issuer Germany to end the year at 0.65 percent. That's higher than current levels at around 0.21 percent but down 15 bps from the last forecast DE10YT=RR .