Goldman Sachs: US fiscal discipline unlikely, steepening yield curve expected

<p>Remarks from Goldman Sachs'&nbsp;Ashok Varadhan, co-head of global banking and markets <span>expects the US Treasuries curve to steepen in the long term:</span></p><ul><li><span>"Fiscal spending has not abated. It's strange for us to be spending this much" when employment is high, </span></li><li><span>

"It doesn't feel like we're going to see fiscal discipline any time soon. … It's hard to see long-term rates coming down meaningfully,"&nbsp;</span><br></li><li>"And so our base case on the trading desk is we expect a more normalized yield curve, a steeper yield curve, but really more with normalized and lower rates in the front end and not a lot of relief in the back end."
</li></ul><p>Info via Reuters.&nbsp;</p><figure data-media-><img src="https://images.forexlive.com/images/Goldman%20Sachs_id_55b85735-8233-4c47-a9f0-6d07ae27d01b_original.jpg" alt="us ppi" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/Goldman%20Sachs_id_55b85735-8233-4c47-a9f0-6d07ae27d01b_original.jpg" /></figure><p><br></p>

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