Kaitou Macro: The yield curve of U.S. Treasury bonds may become inverted

According to Jinshi News, Capital Economics stated that the yield spread between the 10-year and 2-year U.S. Treasury bonds will further narrow in the coming months, and the ongoing escalation of tensions in the Strait of Hormuz may lead to a complete inversion of the yield curve. The reason for this difference is that the expected rise in short-term real interest rates exceeds that of long-term real interest rates, with the Federal Reserve expected to raise interest rates by 75 basis points over the next year.