Nomura Securities believes that US President Trump's proposal to pay a “dividend” of 5,000 US dollars and US Treasury Secretary Bezent's intervention in the bond market will weaken bond investors' confidence. “The US government's unconventional communication methods and actions make bond investors uneasy,” said Andrew Tishurst, Nomura's senior interest rate strategist in Sydney. “Due to the heavy burden of government debt and heavy financing tasks, an already fragile background already exists,” and the issuance of artificial intelligence-related bonds and the sharp rise in global oil prices have made matters worse. “Subsequent, Bezent's intervention to step up bond buybacks disappointed the market overnight, and Trump's proposal to pay a $5,000 'dividend' to voters — although unlikely to happen — may further weaken bond investors' confidence.” Tishurst said that Trump and Bezent are probably watching the bond market closely; “Trump wants to lower short-term interest rates, while Bezent wants to lower long-term interest rates.”

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.