REUTERS/Rick Wilking/File Photo Acquire Licensing RightsNEW YORK, Nov 21 (Reuters) - Goldman Sachs (GS.N) expects the U.S. Treasuries curve to steepen in the long term, driven by rising fiscal spending, top executives said.
"Fiscal spending has not abated.
Benchmark 10-year Treasury yields, which move inversely to prices, hit 5% last month for the first time since 2007.
Demand for long-dated Treasuries has slipped in the last six months from central banks, U.S. regional banks and sovereign wealth funds, said Jim Esposito, who jointly runs Goldman's global banking and markets division.
"Our economists think most central banks will start cutting rates next year, albeit slowly.
Persons:
Rick Wilking, Goldman Sachs, Ashok Varadhan, Goldman's, Fitch, Moody's, government's, Treasuries, Jim Esposito, they've, Esposito, Lananh Nguyen, Davide Barbuscia, Richard Chang
Organizations:
REUTERS, U.S, Treasury, Federal Reserve, Thomson
Locations:
Westminster , Colorado, U.S, QE, China