Goldman Sachs: Governments should cut spending to curb runaway borrowing costs

Goldman Sachs' Anthony Gutman said governments need to cut spending and achieve stronger growth to cope with rising borrowing costs. He noted that rising yields are a widespread problem across Western economies, specifically citing recent turmoil in the U.S. Treasury and French government bond markets. Gutman said the European election cycle is exacerbating policy uncertainty, making fiscal trade-offs harder to manage.