Group 1 - Hong Kong will maintain the peg of the Hong Kong dollar to the US dollar, while enhancing its position as a global offshore RMB business center, with plans to introduce more RMB products for overseas investors [1] - The US Senate plans to propose significant revisions to Trump's $3 trillion economic plan, aiming for enactment before July 4, despite criticisms from figures like Elon Musk [1] - The New York Fed's survey indicates a decline in US consumer inflation expectations for May, with the one-year expectation dropping from 3.6% to 3.2%, marking the first decline since 2024 [2] Group 2 - Japan's Cabinet Office revised the first quarter GDP contraction to a 0.2% annual rate, better than the initial estimate of 0.7%, which may support the Bank of Japan's cautious stance [2] - The Japanese government is considering repurchasing previously issued ultra-long bonds at low interest rates, in response to rising yields [3] - Japanese investors sold a record ¥1.48 trillion in German sovereign bonds in April, the largest monthly reduction since 2014, and also sold ¥1.07 trillion in US sovereign bonds, the largest reduction since October of the previous year [3] Group 3 - US stock indices closed mixed, with the Dow Jones remaining flat at 42,761.76 points, the S&P 500 rising by 0.09% to 6,005.88 points, and the Nasdaq increasing by 0.31% to 19,591.24 points [4] - US Treasury yields fell across the board, with the 2-year yield down 4.15 basis points to 3.993%, and the 10-year yield down 3.18 basis points to 4.474% [4] Group 4 - International oil prices strengthened, with US crude oil main contract rising by 1.24% to $65.38 per barrel, and Brent crude oil main contract increasing by 0.96% to $67.11 per barrel [5] - The US dollar index fell by 0.19% to 99.01, while non-US currencies generally appreciated against the dollar [5]

Core Viewpoint - The increase in interest rates will lead to higher government debt financing costs, potentially putting pressure on government spending [1] Group 1 - Rising interest rates will increase the cost of debt financing for the government [1] - Higher financing costs may impact the government's ability to maintain current spending levels [1]

Core Viewpoint - Japan has been in a prolonged low-interest rate environment, leading to a situation where a portion of the public has not yet experienced the effects of rising interest rates [1] Group 1 - The prolonged low-interest rate environment in Japan has shaped public perception and financial behavior [1] - The statement highlights a disconnect between economic policy changes and public awareness or experience [1]

Core Viewpoint - Japan is gradually entering a phase of rising interest rates, as stated by Prime Minister Shigeru Ishiba [1] Group 1 - The Japanese government is signaling a shift in monetary policy towards higher interest rates [1]

Group 1 - The latest data indicates a concerning trend in the U.S. labor market, with continued unemployment claims rising to 1.92 million, the highest level since November 2021, exceeding economists' expectations of 1.89 million, suggesting potential pressure on the labor market [1] - The increase in unemployment claims has not yet shown a significant impact in the non-farm payroll report, with the unemployment rate in April at 4.2%, the highest since July of the previous year, but this increase has not raised widespread market concerns [1][3] - Analysts believe the current labor market trend reflects a "low hiring, low layoffs" state, with initial unemployment claims slightly up by 14,000 to 240,000, indicating that the overall economy is still absorbing labor despite a slowdown [3] Group 2 - Experts anticipate that the labor market may face more noticeable pressure in the coming months, particularly with the release of non-farm employment data and expectations of economic growth slowing in the second half of the year [5] - The dynamics of the labor market are becoming crucial for observing future economic trends, influenced by high inflation, rising interest rates, and global trade uncertainties [3]

Core Viewpoint - Rising interest rates have led to significant unrealized losses for Japanese insurance companies, particularly in their holdings of domestic bonds, creating a challenging environment for these institutions [1][3]. Group 1: Financial Impact on Insurance Companies - Meiji Yasuda Life Insurance Company reported a staggering increase in unrealized losses on domestic bonds, rising from 161.4 billion yen to approximately 1.386 trillion yen (about 9.7 billion USD) in the last fiscal year [1]. - Nippon Life, Japan's largest life insurance company, also announced a record unrealized loss of 3.6 trillion yen, doubling year-on-year [1]. - The overall situation reflects a broader trend affecting life insurance companies across Asia, with substantial losses attributed to market volatility triggered by U.S. policies [1]. Group 2: Market Dynamics and Bond Sales - The Bank of Japan's reduction in large-scale bond purchases has led to a sell-off of long-term bonds, causing prices to plummet and yields on 30-year and 40-year government bonds to reach historic highs [1][3]. - As interest rates rise, insurance companies face pressure to sell bonds, either to meet cash demands from policyholders or to reinvest in higher-yielding new bonds [3]. - This forced selling could exacerbate the bond market's decline, leading to further depreciation of existing bonds and increasing unrealized losses for these companies [3].

Group 1: Rising Bond Yields - The yield on the 30-year U.S. Treasury bond rose to nearly 5.1%, the highest level in a year and a half, with a significant increase of over 0.4% since May [2][3] - Long-term bond yields are rising across Japan, the UK, and Germany, indicating a broader trend of increasing rates in the bond market [5] - The rise in yields is attributed to concerns over fiscal instability and the impact of U.S. trade policies on global supply chains and inflation [2][9] Group 2: Economic Indicators and Monetary Policy - Recent economic indicators, including April's employment data, have led to a decrease in expectations for interest rate cuts by the Federal Reserve, with some officials suggesting only one cut may occur this year [6] - In the UK, the consumer price index rose by 3.5% year-on-year, prompting discussions about the pace of future interest rate cuts by the Bank of England [8] Group 3: Fiscal Concerns and Market Reactions - The U.S. Congress is working on fiscal legislation that could lead to a significant increase in public debt, estimated at $3 trillion to $5 trillion over the next decade [10] - Concerns about fiscal deterioration are prevalent in Japan and Europe, with rising defense spending discussions contributing to increased interest rates [10] - The perception of U.S. Treasuries as a safe asset is being challenged, leading to potential shifts in investment strategies among global investors [10] Group 4: Impact on Housing and Corporate Investments - The rise in long-term interest rates is creating headwinds for investments reliant on long-term borrowing, such as housing [11] - The 30-year mortgage rate reached 6.92%, contributing to a 5% decline in mortgage application indices [11] - High interest rates may increase the risk of corporate bankruptcies, particularly for companies with heavy debt burdens [11]

Core Viewpoint - Japan's Finance Minister, Kato Katsunobu, warned that if Japan's fiscal situation loses market confidence, it could lead to rising interest rates, which would subsequently affect debt repayment [1] Group 1 - The potential loss of market trust in Japan's fiscal management could trigger an increase in interest rates [1] - Rising interest rates may pose significant challenges for Japan in terms of servicing its debt obligations [1]

美国总统特朗普：尽管利率上升，住房数据依然良好。 ...