Goldman raises forecasts for Bund and Treasury yields
- Forecasts 10Y bund yield will rise to 0.9% by end of 2015 (prior forecast 0.5%)
- Forecasts 10Y US Treasury yield at 2.75% by year end
- Even at these higher yields Goldman believes bonds are still too expensive -- its model suggests economic fundamentals put the proper 10Y Treasury yield at 3.2%.