"Immense" AI Narrative-Shift Leaves Goldman's Rates Traders Looking For Hedges

The short term macro outlook remains relatively benign; that’s not changed this year despite the growing AI displacement theme.

Goldman Sachs rates traders believe that growth should continue to be supported by well flagged tailwinds through H1 from fiscal, easy FCIs, AI capex and fading tariff effects.

There were some signs of the consumer softening through Q4, but those are now being offset