Goldman Sachs Group has cut its forecast for U.S. Treasury yields, pointing to an increased likelihood that the Federal Reserve will cut interest rates sooner than previously expected. Strategists, including George Cole, wrote in a July 3 note that they expect yields on the two-year and 10-year Treasury bonds to fall to 3.45% and 4.20%, respectively, after expecting the two benchmarks to end the year at 3.85% and 4.50%, respectively. The move comes after Goldman economists this week revised their expectations for a rate cut by the Federal Reserve this year. The latest forecast from Goldman's economic team comes after strong U.S. jobs data on Thursday eased pressure on the Federal Reserve. But Goldman Sachs interest rate strategists were not discouraged, noting that the strength of the data was undermined by a large contribution from government hiring and a small decline in the labor force participation rate. (Jin Ten)