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After Federal Reserve Chairman Kevin Walsh's hawkish move, the real yields of 2-year and 5-year TIPS increased by approximately 57 and 64 basis points, respectively. On September 16th, the Federal Reserve raised interest rates by 25 basis points to 3.75% -4.00%. The cumulative yield of 2-year US Treasury bonds in September increased by about 55 basis points, and the 30-year bond yield rose to about 5.52%. The market expects a probability of another interest rate hike in October to be about two-thirds. The rise in interest rates poses a challenge to Treasury Secretary Bessent's short-term bond financing and long-term bond repurchase strategies. (Source: Bloomberg) AI interpretation: The Federal Reserve directly pushed up the market benchmark interest rate by raising interest rates, leading to a significant increase in short-term US bond yields. This policy path clarifies the continuation of a tight monetary environment, directly increasing the interest cost of government debt financing. The market's pricing of subsequent interest rate hikes reflects ongoing concerns about inflationary pressures, and this high interest rate environment is reshaping the pricing logic of the capital market. The current rise in interest rates not only suppresses liquidity, but also puts substantial pressure on the debt management strategy of the Ministry of Finance.