Goldman Says Treasurys Run Over
Goldman Sachs (NYSE:GS) says in a note today that 10-year Treasury yields, trading recently at 3.022%, have stabilized around 3% on both sides of the Atlantic and below the bank’s measures of “fair value”.
“Barring a meaningful downgrade to the 2012-13 growth outlook, we think that the bond rally is close to an end,” Goldman’s bond strategists write. Goldman sticks with its year-end call of a 3.75% yield on the 10-year, even as some other major banks have cut their yield calls.
Keep in mind that Goldman Sachs shares are now trading with a P/E Ratio of 14.7 and EPS of 9.11. GS shares are only 3.44% from its 52-week low and trading today around $134.