Analyst: US long-term Treasury yields may rise

Golden Ten Data reported on June 24 that analysts at First Group Bank stated in a report that due to uncertainties surrounding the inflation outlook, U.S. long-term Treasury yields may rise in the coming months. They pointed out that market concerns about persistent inflation could intensify, and U.S. inflation data may also exceed expectations. “To what extent the Federal Reserve will respond to this remains to be seen.” The analysts believe that, combined with the U.S. government's ongoing expansionary fiscal policy, the current environment suggests long-term yields will rise. Meanwhile, short-term yields have already reflected a number of expected rate hikes that exceed the analysts’ own forecasts. In the short term, market speculation about further rate hikes will persist, indicating that short-term yield volatility is likely to remain elevated.