Goldman Sachs says the risk for US yield is skewed to the downside

<p>Goldman Sachs US bond view, analysts say that yield on the 10 year are 'meaningfully' above their estimate of fair value and risks are skewed to the dowside.</p><p>GS say they expect the US economy to falter in Q4, saying they are expecting a "growth pothole" in that quarter. And thus analysts there forecast a 25 bp, or thereabouts, fall in 10-year yields from current levels by year-end. This is pretty much a consensus call though. </p><p>GS add a cautionary note saying that without this or some other catalyst yields could turn around and carry on rising. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.