The U.S. budget deficit is growing at a time when the unemployment rate is falling, something that hasn’t happened in peace time since World War II. Goldman Sachs projects that rising costs to fund the deficit will force the government to borrow more which will push up interest rates. In all, the benchmark 10-year Treasury note yield likely will rise from nearly 3 percent now to 3.6 percent by the end of 2019, Goldman projects.

Source: GS

For further information, please read the attachment (PDF)