US Treasury yields continue to rise, deepening market pricing of Federal Reserve policy path

The yield on 10-year US Treasury bonds has risen to around 4.94%, while the 30-year bond has hit 5.35% at one point. The Ministry of Finance raised the limit for long-term US Treasury bond repurchases to $6 billion, resulting in actual purchases of $5.19 billion, and the yield continued to rise. The rise in oil prices has pushed up inflation expectations, and market expectations for interest rate hikes have risen to 71%. The capital expenditure boom brought about by AI construction has led companies to issue a large number of bonds to compete for funds, and long-term interest rates are facing structural pressure. The market demands higher yields to undertake long-term US debt.