[Key U.S. Treasury Yield Curve Sends Warning Signal: Walsh Era Rates May Stay Higher for Longer] According to a report by Jinse Finance, on May 26, a key U.S. Treasury yield spread indicator narrowed to its lowest level in a year, as traders increased bets that the Federal Reserve might keep interest rates at higher levels for a longer period under the leadership of new chairman Kevin Walsh. The yield spread between 5-year and 30-year Treasury bonds has narrowed to about 81 basis points, the lowest level since May 2025. This is an important indicator measuring the premium level investors demand for holding longer-term U.S. Treasuries. This trend is mainly driven by the sell-off in short-term Treasuries, which are more sensitive to changes in Federal Reserve policy expectations. As of last Friday's close, the yield spread between 2-year and 30-year Treasuries also narrowed to its lowest level since July.