Key Indicators in Financial Markets: 30-Year U.S. Treasury Yield

If the 30-year U.S. Treasury yield truly breaks above 5.2%, the current rebound in U.S. stocks is likely to start facing problems.
This level not only represents technical resistance but also several dangerous potential variables.
The first is a resurgence of inflation.
The upcoming inflation data will be very critical, especially given that the current Strait situation remains tense and supply chain risks have not significantly eased; the subsequent cooling may not go as smoothly as the market expects.
The second is the market beginning to doubt the independence of the Federal Reserve.
If figures like Kevin Warsh, who are seen as somewhat "politicized," start to signal a tendency to cut rates in this environment, the market might interpret this as: the problem is more serious than previously thought.
From a long-term structural perspective, the U.S. Treasury yield is now somewhat resembling a rising triangle that has been forming for over three years.
If it continues to break upward, the theoretical target could even exceed 6%.
Once this happens, overvalued assets will face significant pressure, with U.S. stocks likely to come under initial stress, and the crypto market probably will follow the U.S. stock market.
Overall, it’s prudent to be cautious moving forward. #Gate广场五月交易分享