According to reports from Jinshi Data, The Wall Street Journal states that the Trump effect has recently manifested in the U.S. Treasury market. Investors expect interest rate cuts and are scrambling to buy 2-year Treasury bonds, lowering yields. Meanwhile, those anticipating high interest rates are selling 30-year Treasury bonds, pushing yields higher.
Dow Jones market data shows that the yield spread between 2-year and 30-year Treasury bonds is close to the highest level since early 2022, becoming a key component of the yield curve. Nevertheless, long-term government bond yields are still trading safely below 5%.