The yield on the US 30-year Treasury bond traded at 5.317% on the 18th, up 1 basis point, reaching its highest level in nearly 19 years. Analysts suggest that the communication style of Federal Reserve Chair Kevin Warsh has contributed to increased volatility in the bond market. The rise in long-term rates serves as a baseline for increasing borrowing costs across the US economy, affecting mortgages, corporate bonds, and auto financing. As discussions continue regarding the Fed's forward guidance, the market is feeling uncertainty about the future path of interest rates. Axios reported that the widening fiscal deficit and large corporate bond issuances are behind the rise in Treasury yields. Mark Cabana, a strategist at Bank of America, warned that the absence of guidance from Chair Warsh could lead to higher rates and increased costs for taxpayers. Goldman Sachs analyzed that the Fed's reaction function has made the impact on the yield curve uncertain. This rise in rates is not limited to the bond market; it may also play a role in the discount rates of global financial markets and affect risk assets. Additionally, the Congressional Budget Office has revised its annual fiscal deficit forecast to $2.1 trillion. Market participants are closely monitoring the impact of rising long-term rates on financial conditions.
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Today’s WEEX TradFi Daily Brief covers strength in the storage and optical communications sectors as well as the pre-market U.S. earnings and macro data outlook, helping you quickly capture stock-token trading opportunities.


















