Yields climb to four-week high

On Wednesday, the yield of US treasury bond reached the highest level in about a month. Due to weak demand for auction of treasury bond and market concerns that the Federal Reserve may need to maintain high interest rates for a long time, the overall performance of US stocks was under pressure.

The yield of two-year treasury bond rose 3.2 basis points to 4.983%; The yield of 10-year treasury bond rose 8.1 basis points to 4.623%; The yield of the 30-year treasury bond rose 8.6 basis points to 4.742%.

Weak auction demand

The US $44 billion seven-year treasury bond auction conducted by the Ministry of Finance on Wednesday saw weak demand, with the yield rising 1.3 basis points. The participation ratio of indirect and direct bidders was lower than the average, forcing major dealers to increase their subscription efforts. The auction of two-year and five-year treasury bond bonds earlier this week also performed poorly, totaling nearly $140 billion, leading to higher yields.

Economic Activity Report

The Brown Book report released by the Federal Reserve on Wednesday shows that economic activity continued to expand from early April to mid May, but the situation varies across industries and regions. Retail spending remains stable or slightly increases.

On Tuesday, Neel Kashkari, the President of the Minneapolis Federal Reserve Bank, stated that the possibility of further rate hikes cannot be ruled out, and rate cuts are unlikely to occur in the coming months. His comments come as the Federal Reserve's preferred inflation indicator, the Personal Consumption Expenditure (PCE) index, is about to be released.