Institutions: The long-term Intrerest Rate in the United States may still rise

On January 16th, Jinshi Data, SEI analyst Jim Smigiel said that there are too many potential risks that could lead to a re-acceleration of US inflation and keep the Intrerest Rate at high levels for a longer period of time. This means that the US Treasury yield may further rise. The chief investment officer said in a report: ‘The bond market seems to share our concerns, since the long-term US Treasury yield has risen by about 90 basis points since the unexpected 50 basis point rate cut by the Fed in mid-September 2024.’ LSEG data shows that the money market currently expects the Fed to cut interest rates by 37 basis points this year. Expectations for rate cuts have risen from around 25 basis points before the release of US inflation data on Wednesday.