Analysis: US Treasury yields show signs of losing control, facing a 'big test' at the beginning of Walsh's tenure

The recent sharp fluctuations in the US treasury bond bond market have put Kevin Walsh, the incoming chairman of the Federal Reserve, in the face of an important test at the beginning of his tenure. Subadra Rajappa, head of Americas research at Societe Generale, stated in an interview with Bloomberg TV on May 15th that bond yields have shown significant anomalies due to expectations of accelerated inflation. Rajapak pointed out that the surge in energy prices caused by the Iran War is intensifying inflationary pressures in the United States, which will limit the space for Bush to push for interest rate cuts, a policy direction that he himself supported and that US President Trump has requested. She bluntly said, "I'm starting to worry a bit because bond yields do seem a bit out of control, and we should pay close attention to the signals released by the bond market." Expectations in the interest rate market also quickly turned. Bloomberg compiled data showing that traders currently expect the probability of the Federal Reserve raising interest rates before December to be close to two-thirds. On February 27th, the day before the US and Israel took military action against Iran, the market was widely betting on more than two interest rate cuts within the year. (Golden Ten)