Following a protracted period of downward pressure, the U.S. bond market has exhibited indications of stabilization. Notably, as the pivotal 10-year U.S. Treasury yield, recognized as the "Global Asset Pricing Anchor," reached 4.5% on November 15th, a conspicuous surge in purchasing interest materialized, prompting traders to actively pursue opportunistic buying strategies.
Subsequent to the breach of the 4.5% threshold on November 15th, the 10-year U.S. Treasury yield promptly reversed its trajectory and refrained from exceeding this benchmark in subsequent trading sessions. The conclusion of last week witnessed the closure of the 10-year Treasury yield at 4.4%, reflecting a marginal 3 basis point decrease from the previous week's conclusion. This transition signifies a resurgence in interest towards U.S. Treasuries, particularly as their allure escalates notably amidst yield levels surpassing 4%.
(Source:Bloomberg)
Erin Browne, a portfolio manager at Pacific Investment Management Company, characterized U.S. Treasuries as assets characterized by "minimal volatility and robust returns." She emphasized that a potential ascent of the 10-year Treasury yield to 5% would evoke a heightened inclination towards more assertive purchasing behaviors. This narrative underscores the burgeoning appeal of U.S. Treasuries as an investment vehicle, especially within a global landscape marked by subdued interest rates.
Presently, diverse U.S. Treasury yields have demonstrated variances. As per Sina Finance's data, the 1-month Treasury bill yield stands at 4.6170%, the 3-month bill yield at 4.6040%, the 10-year Treasury yield at 4.3570%, and the 30-year Treasury yield at 4.5430%.
Moreover, in accordance with the latest publication from the U.S. independent research entity, the Federal Accountability Office, the aggregate U.S. debt has surpassed $36 trillion this week, reaching an unprecedented pinnacle. The transition from $35 trillion at the conclusion of July to the current $36 trillion within a span slightly exceeding three months delineates an accelerated pace of U.S. debt expansion.
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