While interest rates on U.S. government bonds have soared, interest rates on local government bonds are also rising slightly.
This is due to the strong preference for risky assets on the prospect that the U.S. benchmark interest rate will be frozen for the time being. The bond market seems to be under growing pressure to raise interest rates.
According to the U.S. Treasury Department, the yield on 10-year U.S. Treasuries rose 8.9 basis points (1bp = 0.01 percentage point) to 4.338% on the 24th (local time). This is the highest level in the last month.
The two-year interest rate, which is relatively more sensitive to monetary policy, rose 9.3 basis points to 4.045%. Bond yields move inversely to prices. Higher yields mean bond prices have fallen. The drop in U.S. Treasury prices seems to have been due to the reduced uncertainty and burden on the U.S….
