U.S. Treasury yields rise, driven by expectations of rate cuts and high corporate bond issuance

Jinse Finance reported that U.S. Treasury yields rose on Monday due to a high volume of corporate bond issuance and the continuation of last week's pessimistic tone in the Treasury market. At that time, Federal Reserve Chairman Jerome Powell poured cold water on the possibility of further monetary policy easing this year. Meanwhile, the U.S. government shutdown that began on October 1 may become the longest in history this week, disrupting the release of key economic data. This increases the uncertainty faced by policymakers and investors when assessing the direction of inflation and the weakness of the job market. Kelly Kowalski, Head of Investment Strategy at MassMutual, said: "I think the decline in Treasury yields was too fast and too steep." "The market previously expected the Federal Reserve to cut rates significantly, but Powell poured cold water on those expectations last week... More important than the December meeting, this has raised questions about the significant rate cuts already priced in for next year and the Fed's view on this," she said, adding: "This is largely related to the lack of data."