On the eve of the Federal Reserve's interest rate decision (the market generally expects a 25 basis point rate cut), long-term U.S. Treasury yields fell slightly, with the 10-year Treasury yield approaching the 4% mark. Short-term Treasury yields did not change much, as the market has already priced in the interest rate cut. However, if the decision includes any comments on future interest rate trends, yields may fluctuate. "Bond investors remain cautious, and yields are expected to react," said Frank Walbaum of Naga in a report. The market analyst pointed out that if economic expectations weaken or policy guidance for further rate cuts is released, Treasury yields and the US dollar exchange rate may fall further; however, if a more cautious signal is released, it may bring temporary relief to the market. (Jinshi)
