Is the fall of US bonds over? Wall Street's big bearish traders are calling for 'profit-taking': 5% Interest Rate has peaked

The Interest Rate of US bonds fell significantly last week, with the market expecting it to stabilize at 4.4% by the end of the year. Investors may have the opportunity to follow the market's post-correction layout. (Background: The first inclusion of US Cryptocurrency trading in IRS tax filing, a stark contrast to the 'tax regulations in Taiwan'.) (Background: Tether CEO: Will there be further business development in the US, and will Trump support USDT?) The US bond market saw a continuous rise in Interest Rate at the end of December last year due to strong economic data, reaching over 5%. However, last week, the annual core CPI growth rate in the US dropped to 3.2%, the first decline in six months, which pushed the Interest Rate of US bonds to a significant fall. The 10-year US bond Interest Rate fell the most in 7 weeks. According to the New York bond market closing data on January 17th: the 2-year bond Interest Rate rose by 3.6 basis points to 4.272%, with a weekly drop of 12.2 basis points. The 10-year bond Interest Rate slightly rose by 0.4 basis points to 4.610%, with a weekly drop of 16.1 basis points. The 30-year bond Interest Rate slightly increased by 0.1 basis points to 4.845%, with a weekly drop of 11.7 basis points. Market data shows that this is the largest single-week fall in the Interest Rate of the three-year US bonds since the end of November last year. It is widely believed that the lower-than-expected December CPI data has reduced the possibility of further interest rate hikes by the Federal Reserve, thereby driving a pullback in the Interest Rate. Trump's policy is a key variable. As the Trump administration is about to take office, its fiscal policy may have a profound impact on the bond market. Michael Hartnett, Chief Investment Analyst at Bank of America, pointed out that the size of the US government has reached $7.3 trillion, equivalent to the third largest economy in the world. Over the past five years, the strong rise of the US economy has largely relied on the expansion of government expenditure, but such rising momentum may be difficult to sustain. Hartnett pointed out that for the first time in nearly 90 years, the 10-year rolling return rate of US Treasury bonds has fallen to -0.5%, a rare negative value. In comparison, the long-term return rate of US stocks during the same period was 13.1%, commodities were 4.5%, and treasury bills were 1.8%. The attractiveness of US bonds compared to other assets is declining. Interest Rate forecast: expected to end the year at 4.4% Market forecasts for the year-end Interest Rate are being raised. Economists' analysis indicates that the 10-year US bond Interest Rate may end at 4.4% by the end of this year, higher than the forecast of 3.7% in October last year. In addition, the median estimate for the federal funds Interest Rate has been raised from 3.3% to 3.89%. Institutional investors pointed out that the 10-year Interest Rate is currently close to 4.8%, but has not yet exceeded the historical high of 4.99% after the epidemic. The possibility of a rate hike has decreased, providing investors with a favorable opportunity for bond layout in the current Interest Rate environment. Well-known short experts take profits. Mark Dowding, a well-known Wall Street investor, recently stopped shorting US bonds and chose to take profits when the 30-year Interest Rate approached 5%. He believes that the Interest Rate of 30 years has already reached 5%, and such an Interest Rate is indeed quite high. The possibility of further significant rise in the short term is low. Other analysts also pointed out that the possibility of the Interest Rate breaking through 5% is extremely low, and the tension in the bond market is gradually easing. Related reports: Mrs. Trump also promotes meme coin $MELANIA! Community is angry: Tired of being treated as fools. Will Trump's meme coin cause a constitutional crisis in the US? Forbes: $TRUMP may be viewed as a security by the SEC due to encryption. Trump saves TikTok: Holding 50% of the shares in the US can continue to operate, is Musk a potential buyer? <US bonds in trouble? Wall Street's big bearish traders shout 'Take profits': 5% Interest Rate has peaked> This article was first published on BlockTempo, the most influential blockchain news media in the Dynamic Zone.