In January, the US bond interest rate rose rapidly, and the 10-year US bond interest rate rose from 1.51% at the end of last year to 1.87% on January 18. Later, due to the tension in Ukraine, the risk aversion was born, which once fell back to the level of 1.75%, but later, due to the hawkish market interpretation of the Federal Reserve’s interest rate meeting in January, it rushed to the level of 1.86% again, but soon fell back to the recent level of 1.76%. The interest rate of two-year Treasury bonds with shorter duration more directly reflects the expectation of interest rate increase. Since the beginning of the year, it has risen all the way from 0.73% at the end of last year. After the Federal Reserve’s meeting in January, it soared to 1.18% on January 27, a sharp increase of 45 basis points in one month, reflecting the market’s expectation of four to five interest rate increases.
Against the background of soaring interest rates, US stocks experienced a sharp correction, while China’s stock market also fell due to the impact. However, what is more strange is that the adjustment range of China’s stock market is still large with the support of the loose remarks contained by the Central Bank of China. US bond interest rates rise, will the stock market continue to fall?
The Beijing Winter Olympics is approaching, but the factors of instability in the international environment are increasing. Tensions in Ukraine, the United States evacuated embassy personnel and provided weapons support to Ukraine. Recall that during the 2008 Beijing Olympic Games, Georgia relied on the support of western countries to raid the pro Russian forces in the territory, but the Russian blitz repulsed the Georgian government forces and then withdrew. How the situation in Ukraine will develop this time has attracted international attention.
