The Trump Effect Begins to Emerge in the U.S. Treasury Market in Recent Weeks

According to a report by Jinse Finance, the Trump effect has started to manifest in the U.S. Treasury market over the past few weeks. Investors anticipating rate cuts have been snapping up 2-year U.S. Treasury bonds, driving down their yields. Meanwhile, those expecting interest rates to remain elevated over time have sold off 30-year U.S. Treasury bonds, pushing yields higher. Dow Jones market data shows that the yield spread between 2-year and 30-year Treasury bonds is hovering near its highest level since early 2022, a key component of the yield curve. Nevertheless, long-term government bond yields are still trading safely below 5%. (Jin10)