ME News reports that oil prices and inflation concerns have pushed up U.S. Treasury yields, with the 10-year reaching 4.58%, the highest since 2007, and the 30-year also rising. If maintained until the end of this fiscal year, interest expenses will increase by about $8 billion; if extended to the 2027 fiscal year, it will exceed $30 billion. Market concerns over inflation and expanding deficits have triggered bond sell-offs, with the Federal Reserve's response seen as insufficient, and bond vigilantes reemerging. The rise in long-term interest rates has also increased mortgage rates, and the market may discuss issuing more ultra-short bonds or restarting reverse repurchase operations.

MeNews

2026-05-24 12:20:18

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ME News Report, May 24 (UTC+8), as the ongoing US-Iran conflict continues to push up oil prices and inflation expectations, US Treasury yields have risen to their highest levels since 2007, and American taxpayers may need to bear an additional tens of billions of dollars in interest payments. Data shows that the US 10-year Treasury yield is currently at 4.58%, higher than the 4.13% baseline forecast by the Congressional Budget Office (CBO); the 30-year US Treasury yield has also hit a new high since 2007. If the current yield levels persist until the end of this fiscal year, US fiscal interest expenses will increase by approximately $8 billion; if maintained throughout the 2027 fiscal year, the additional interest costs will exceed $30 billion. The market fears that rising oil prices and expanding fiscal deficits will further boost inflation and intensify US debt sell-offs. Some Wall Street investors believe that the Federal Reserve's current response to inflation risks is insufficient, and "bond vigilantes" have reasserted dominance in the market. Additionally, as long-term interest rates rise rapidly, US mortgage rates are also climbing, and the market is beginning to discuss the possibility of the Treasury increasing ultra-short-term debt issuance or the Federal Reserve restarting intervention measures like "Operation Twist." (Source: BlockBeats)

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ProofOfNap

· 18h ago

10-year high, 30-year also rising, long-term pressure fully released

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ExitLiquidityBuddy

· 18h ago

If you restart the reversal operation, managing the yield curve is a technical skill.

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GateUser-53a6e1a8

· 18h ago

This way of selling in the bond market has a bit of a show of force.

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EraPuzzleMaster

· 18h ago

The Federal Reserve's insufficient response to this criticism probably gave Powell a headache.

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MevTeaTime

· 19h ago

Inflation + deficit double whammy, the bond market sell-off logic is quite straightforward.

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GateUser-1859b7cd

· 19h ago

Short-term bond issuance? Feels like patching the east wall by taking from the west wall.

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LateBlockLarry

· 19h ago

If the return rate remains high, refinancing costs will explode.

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AirdropMileCounter

· 19h ago

Interest expenses, this rigid cost, is even harder to cut than military spending

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Post-RainCancellationAgent

· 19h ago

Over 30 billion in fiscal year 2027, this number is enough to be included in the budget report.

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The US-Iran conflict has driven up inflation expectations and US Treasury yields, potentially increasing US debt interest payments by billions of dollars.

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