To da moon? The yield of US Treasury bonds fell to 4.2%, hitting a new low for the year. Goldman Sachs estimates that it may return to the 3% level, beware of Fluctuation in PCE tonight

Under the impact of Trump's tariff policy, the US Intrerest Rate has been continuously dropping recently. Currently, the 10-year US Treasury Intrerest Rate has reached 4.22%, hitting a new low for the year. (Background: Have the reasons for the encryption big dump been found? A large amount of funds 'fleeing to US Treasury for hedging' traders heavily betting on a big rise) (Context: The Fed 'not in a hurry to cut interest rates' 10-year US Treasury Intrerest Rate surges to 4.55%, Wall Street focuses on tonight's January CPI) US President Trump's series of economic policies and tariff decisions have raised concerns among investors that the hard-won containment of inflation may reignite, even risking stagflation, leading to a downward adjustment of market expectations for Fed rate cuts and the high US 10-year Treasury Intrerest Rate. However, with the recent heavy losses in the risk investment market, hedge funds are flowing into US Treasuries, bringing the current 10-year US Treasury Intrerest Rate to 4.22%, a new low for the year. US Treasury Intrerest Rate. Image source: Finance M Square Is now a good time to enter US Treasuries? Against this backdrop, many investors have started following US Treasuries again, discussing the current rise in US Treasury prices, and whether it is advisable to buy further. In response to this, the Morgan Stanley team led by Matthew Hornbach recently pointed out that based on the current US economic situation, the US Treasury Intrerest Rate may further drop. (A drop in Intrerest Rate indicates that prices may rise) Analysts believe that although the Federal Reserve (Fed) had previously signaled a slower pace of rate cuts last year, and may not cut rates for the whole year, as economic uncertainties increase, traders are already betting on two more rate cuts of 1 point each this year. In this regard, Morgan Stanley strategists pointed out that if the market expects the Intrerest Rate to drop to 3.25%, the 10-year US Treasury Intrerest Rate may start with a 3. In addition, today (28th), the US will also release the January PCE data. Morgan Stanley expects that the January PCE data may show a slowdown in the rise in prices. If combined with a dovish stance from the Fed, investors may further increase their bond purchases. Inverted US Treasury Intrerest Rate Also worth noting is that the long-term US Treasury Intrerest Rate has once again fallen below the short-term US Treasury Intrerest Rate. As we know, the inverted Intrerest Rate is seen as an important indicator for the Fed to assess the economic situation. Based on the experience of the past decade, whenever this phenomenon occurs, the US economy usually experiences a recession shortly after the inversion is resolved. However, the last Intrerest Rate inversion occurred in October 2022 and lasted for over two years, setting a record for the longest period in half a century, but after the recovery, the US economy did not experience a recession, and even performed relatively better compared to other countries. Therefore, whether this inversion predicts an economic recession cannot be confirmed at present, or it may require more time to unfold. Extended reading: US Treasury Intrerest Rate inversion reaches two years, 'setting a record for half a century,' will the economic recession scenario repeat? Related reports: Trump unveils 'immigrant gold card,' pay $5 million to become a US citizen! Income to repay $35 trillion of US debt CPI breaks 10-year US Treasury Intrerest Rate surges to 4.66%, the largest rise this year, Fed may only cut interest rates once this year? Asia stocks plummet! TSMC plunges by 5%, funds 'fleeing to US Treasuries,' 10-year Intrerest Rate falls. To The Moon? US Treasury Intrerest Rate falls to 4.2%, hitting a new low for the year, with Goldman Sachs estimating a return to the 3s, be cautious of Fluctuation in PCE tonight. This article was first published on BlockTempo, the most influential Blockchain news media.