Governments should reduce fiscal deficits and support more durable economic growth to help address rising borrowing costs, Anthony Gutman, co-CEO of Goldman Sachs International, told CNBC, according to a report published October 5, 2026. Gutman presented lower spending and higher growth as the combination he hopes to see—not as a proven way to bring bond yields down quickly.
What Gutman said governments should do
In an interview with CNBC’s Squawk Box Europe, as quoted in CNBC’s October 5 report, Gutman said policymakers were focused on energy costs and labor-market conditions, but argued that the fundamental response should be lower fiscal deficits and more durable growth.
“We all know what’s driving it. We’re focused on energy costs, we’re focused on the labor market. But fundamentally, what do we need to solve this problem? We need lower fiscal deficits, and we need more durable economic growth,” Gutman said, according to CNBC.
He also acknowledged that governments face trade-offs and that the existing fiscal backdrop makes addressing the issue more challenging. His closing hope, as CNBC reported it, was “that combination of lower spending and higher growth.”
#1 Best Overall
Why lower spending is not the same as lower deficits
Gutman’s prescription links spending restraint with a lower deficit, but the two are not interchangeable. A government’s deficit reflects both its spending and its revenues, as well as economic conditions that affect them. Spending cuts alone therefore do not guarantee a smaller deficit, and the interview report does not specify which programs or budgets he would cut.
Nor does the report establish that spending cuts would quickly lower borrowing costs. It conveys Gutman’s policy view, not a tested forecast or an independently demonstrated causal link between government spending and the yield moves described.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
What the October 5 yield figures showed
CNBC’s report gave two market snapshots for Monday, October 5, 2026. They are dated observations, not current rates or a forecast.
| Market | Instrument | Reported yield | Reported daily move |
|---|---|---|---|
| United States | 10-year Treasury | 5.2581% | One basis point lower on Monday |
| France | 10-year government bond | 4.8812% | More than one basis point higher |
The figures refer to different countries and instruments, so they should not be treated as directly interchangeable measures. CNBC also reported that U.S. Treasury yields had risen on Friday despite a weaker-than-anticipated September nonfarm payrolls print. The report did not break down the causes of that move.
Rank #3
Why elections matter to the business outlook
Gutman warned that Europe’s election cycle was adding policy uncertainty and instability for businesses. That concern is related to, but distinct from, his fiscal recommendation: uncertainty can make it harder for businesses to plan, while the report does not quantify any effect of elections on yields or government borrowing costs.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the report does—and does not—establish
- It reports Gutman’s position: governments should aim for lower deficits and more durable growth, with lower spending and higher growth as the combination he hopes to see.
- It provides dated market observations: the U.S. and French 10-year yields and their reported daily directions on October 5, 2026.
- It does not prove a cause or outcome: it does not show that spending alone drove yields higher, that cuts would rapidly reverse the move, or that the proposed combination has already been achieved.
The available account is CNBC’s report of the interview; the quotations here are attributed to that report rather than to an independently verified transcript.
Quick Recap
Best Value
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
