Goldman Sachs: Long-term interest rate fluctuations in the United States reveal fiscal concerns.

Goldman Sachs strategist stated in a report that there is a contrast between the sharp decline in front-end rate volatility and the long-term end curve volatility, and that based on fiscal concerns, "the risk premium in long-term end volatility is more evident than in direct yields." In the past month, despite "macro uncertainties persisting and concerns about the independence of the Fed simmering", the front-end implied volatility has continued to compress - potential driving factors include increased clarity on tariff risks and "the potential slowdown in US underlying inflation trends." Strategists wrote that compared to previous rate cycles, there are limitations to the compression of front-end volatility, and volatility selling strategies face more two-way risks.