CITIC Securities: US Treasury Long Term Interest Rate Upward May Impact Global Assets

According to a research report by CITIC Securities, on May 15th, the yield of 10-year US Treasury bonds exceeded 4.5%, and the yield of 30-year US Treasury bonds rose to 5.0%. Long end interest rates in major developed markets have also risen, putting pressure on global risk assets. The report points out that the upward trend in interest rates is driven by factors such as rising US inflation data, pressure on US bond supply, and political turmoil in the UK, which may lead to a strengthening of the US dollar, a decline in growth stock valuations, pressure on precious metals and long-term credit assets, and an impact on liquidity in emerging markets. The research report suggests paying attention to the situation in the Strait of Hormuz and the policy signals after Walsh took office.