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Higher Treasury Yields Threaten U.S. GDP Growth by 0.2 Points

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Story summary
  • U.S. Treasury yields rebounded slightly after reaching a near-quarter-century high.
  • G7 sovereign yields rose as investors fretted about persistently high inflation.
  • Economists warned a potential European debt crisis could emerge amid the yield surge.
  • Goldman Sachs economists said higher yields could cut U.S. GDP growth by 0.2 points next year.
  • They also warned yields might threaten the stock boom and force deficit-reduction.