According to BlockBeats, on August 18th, data from BIT (bit.com) showed that the yield on the 30-year US Treasury note rose to 5.29%, the highest level since 2007. This indicates a significant increase in market pricing of long-term risks, heightened concerns about sticky inflation, the Federal Reserve maintaining high interest rates, and the sustainability of large fiscal deficits and debt. Higher long-term borrowing costs for governments, businesses, and consumers typically suppress stock market valuations and tighten global financial conditions, potentially hindering economic growth.

Citadel Securities stated today that the Federal Reserve's continued reluctance to tighten monetary policy poses a broader risk to the overall market. Noshd Shah, Head of Fixed Income Sales for Europe, the Middle East, and Africa at Citadel Securities, said, "In my view, this reflects the market's perception that both the Fed and the Treasury tend to choose the easier path when policymakers face difficult choices. As long as this continues, it will continue to pose a risk to the entire market. The Fed's policy meeting next month will be a closely contested battle."

Bank of America's chief investment strategist, Michael Hartnett, stated that the near-breaking of the $40 trillion mark in U.S. Treasury bonds is the core narrative currently driving the market . Over the past 12 months, U.S. debt interest payments have reached $1.4 trillion, approaching surpassing Social Security as the largest single federal government expenditure. Meanwhile, the 30-year Treasury yield was issued last week at a 25-year high of 5.126%. Hartnett pointed out that unless the 5-year Treasury yield falls below 3.25%, the deteriorating trend in interest payments will not reverse.

Jim Bianco, a renowned macro strategist and founder of Bianco Research, warned today that despite cooling market expectations for a September rate hike by the Federal Reserve, the 30-year Treasury yield still hit a 19-year high of 5.29%. "The time when bond traders can stop panicking is when the Fed starts to panic," Bianco said. He believes that long-term yields will only truly peak after the Fed finally takes action to raise rates, and the current divergence between market and policy expectations is itself a risk signal .