0259 GMT - A firmer-than-expected U.S. June jobs report leads Goldman Sachs economists to bring forward their Fed rate-cut expectations and lower the terminal rate, pointing to a lower range for U.S. yields across the curve. The economists now expect 10-year U.S. yields at 4.20% by end-2025, compared with their previous forecast of 4.50%, with a modestly steeper curve being the likely result. The economists maintain their European and U.K. rate forecasts. GS forecasts Bund yields to reach 2.80% later in the year before surpassing 3% in 2026, as near-term risks around trade uncertainty eventually give way to upside risks due to German fiscal expansion. Meanwhile, the Bank of England's path is unlikely to be affected by the rise in country risk premium, as front-end longs remain relatively well protected, GS says. (jihye.lee@wsj.com)

(END) Dow Jones Newswires

July 03, 2025 22:59 ET (02:59 GMT)

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