David Clewell, co-portfolio manager of T. Rowe Price's multi-asset global return strategy, said that the 5% yield on 10-year US Treasury bonds has always been an important psychological hurdle for investors. Once a key technical level such as this is broken through, systematic and quantitative trading positions may amplify the trend and trigger further selling pressure. However, it is important to separate the speed and magnitude of recent trends from the underlying fundamentals. This wave of sell-offs has been extremely intense, but the overall direction is in line with our view, that is, long-term yields are likely to rise further. Given the resilience of the US economy, the 10-year US Treasury yield rose to 5.5% to 6%, a situation with good reason to support it.

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