U.S. Treasury Secretary to Attend House Hearing, Market Focuses on Fiscal and Debt Management Signals

⑴ US Treasury Secretary Janet Yellen will attend a hearing of the US House Financial Services Committee at 22:00 Beijing time tonight, with the theme being the Secretary's annual testimony on the state of the international financial system. ⑵ Given that the current 10-year US Treasury yield has surpassed 5%, the market will focus on whether Yellen will release new signals regarding fiscal policy, treasury issuance and repurchase plans, debt management, as well as the outlook for the US dollar and interest rates. ⑶ If her remarks lean toward deficit control and stabilizing the bond market, it could ease the upward pressure on long-term US Treasury yields. ⑷ If more signals of fiscal expansion or tolerance for high interest rates are released, attention should be paid to the potential further rise in Treasury yields, and the correlated responses of the US dollar, gold, US stocks, and risk assets.