This Goldman Sachs Exchanges podcast is an interview discussing the unexpected volatility in global bond markets in early 2025. The interview features Goldman Sachs experts Johnny Fine and George Cole, who analyze the factors driving this volatility, including revised growth and inflation expectations, increased bond risk premia due to large deficits, and uncertainty surrounding government policies. They debate the market's interpretation of the data and the potential impact of tariffs on inflation. Specifically, the experts highlight a significant increase in the term premium for 10-year treasuries, reaching its highest level in over a decade. Listeners gain insights into the interplay between economic data, market sentiment, and government policy on bond yields, impacting investment and corporate strategies.
