Expectations of Federal Reserve rate hikes strengthen, and the yield on 10-year US Treasury bonds has recently been trending upward

After speeches by Federal Reserve officials and the release of higher-than-expected CPI data triggered a sell-off in the US market, US Treasury yields have once again become the focus. Market pricing still fully reflects expectations for further Fed rate hikes. However, with oil prices falling sharply, the recent rise in yields could temporarily pause in the coming weeks. Jack Chambers, interest rate strategist at Commonwealth Bank of Australia, is closely monitoring these two factors, but he still believes there is further room for bond yields to rise. He stated that economic momentum and the strengthening of expectations for Fed rate hikes will be the dominant factors, leading 10-year US Treasury yields to generally trend upward in the near term.