The Federal Reserve's new policy may stabilize long-term Treasury yields

According to Jinshi reports, Castle Securities stated that Federal Reserve Chairman Waller's commitment to lowering inflation has enhanced the credibility of the Federal Reserve, thereby supporting U.S. long-term Treasury yields and suppressing term premiums. Following last week's Federal Reserve meeting, trading in the U.S. Treasury market, which amounts to $31 trillion, showed that long-term yields were more stable compared to the two-year yields that are more sensitive to policy. The company's head of fixed income sales, Nohshad Shah, stated, "A highly credible Federal Reserve should benefit long-end rate performance."