Lates News

The price of long-term US bonds has fallen, with the 30-year bond yield rising to its highest level since early September this week as the impact of the Fed's rate cut and policy stance gradually seeps into the market. The 30-year bond yield briefly rose by 6 basis points to 4.86%, reaching a new high since September 5th. It has increased by approximately 5 basis points this week. The 2-year bond yield remained relatively stable on Friday, with a slight decrease for the week. Expectations of further rate cuts by the Fed next year have supported the decline in short-term bond yields, while long-term bond yields reflect persistently high inflation. Chicago Fed President Charles Evans and Kansas Fed President Esther George stated on Friday that concerns about inflation are their primary reasons for opposing rate cuts and supporting the status quo. Strategist Edward Harrison said, "Evans has stated that he opposes rate cuts due to concerns about inflation. Given that traders still expect two rate cuts of 25 basis points each by the end of 2026, his comments suggest that US bonds face downward risks."