TechFlow news — Since the Federal Reserve's significant rate cut on September 18, long-term U.S. bond yields, inflation expectations, and the "term premium" (the compensation investors require for holding long-term Treasuries instead of rolling over short-term ones) have surged sharply. With former President Trump appearing to regain momentum in the presidential race while advocating a series of potentially budget-disrupting policies, this may reflect investor concerns about fiscal profligacy and an overly dovish monetary policy.
Analysts at Bespoke Investment Group noted that among the Fed's 35 first-rate cuts since 1994, the rise in 10-year Treasury yields ranks as the third-largest on record, surpassed only by moves seen in November 2001 and June 2008. Ultimately, investors won't be able to properly assess the Fed's actions until after the presidential election on November 5. (Jinshi)
