Group 1 - The International Financial Association warns that the increase in US debt could trigger a global bond market crisis, as borrowing costs in some countries are linked to US Treasury yields [1] - US Treasury Secretary Yellen emphasizes that the US will not default on its debt and urges Congress to raise the debt ceiling to avoid global economic turmoil, dismissing claims of a collapse in the US bond market [1] - The US April trade deficit narrowed to $87.6 billion, significantly lower than expected, due to a sharp decline in goods imports [5] Group 2 - Japan's Economic Revitalization Minister Akizumi plans to visit the US for trade negotiations, with market expectations that a deal may be reached this month [3] - The Bank of Japan's meeting minutes indicate a worsening supply-demand situation for ultra-long-term bonds, leading to rising interest rates and tightening market liquidity [4] - The US manufacturing PMI for May dropped to 48.5, the lowest since November 2024, with sales cost inflation reaching its highest level since late 2022 [4] Group 3 - Federal Reserve officials express that current inflation data is favorable, with limited direct impact from tariffs on the economy, and anticipate a potential decrease in interest rates over the next 12 to 18 months [1] - The Federal Reserve's preferred core PCE price index rose by 2.5% year-on-year, marking the smallest increase in over four years, while "super core inflation" fell to its lowest level in four years [4]

Group 1 - The core issue is the recent sharp decline in U.S. Treasury prices, raising global concerns about the U.S. fiscal situation and triggering a sell-off in the global bond market [3][5] - The proposed tax reform by Trump is expected to increase U.S. debt by $3 trillion to $5 trillion, exacerbating fears and contributing to the volatility in the bond market [3][5] - Moody's downgrade of the U.S. credit rating has intensified investor anxiety, leading to a rapid sell-off of U.S. bonds [3][5] Group 2 - The 30-year U.S. Treasury yield has surpassed 5% for two consecutive days, marking a new high since November 2023, indicating a significant shift in investor sentiment [5][6] - Investors are not only selling U.S. Treasuries but are also withdrawing from major bond markets, with Japanese and German bond yields rising sharply [8] - Concerns over global inflation are impacting long-term bonds, as investors reassess their strategies in light of changing economic expectations [9][11] Group 3 - The current turmoil in the bond market suggests a major shift in the global financial landscape, with the previous confidence in U.S. Treasuries diminishing [11] - This situation presents both potential investment opportunities and increased risks for ordinary investors, prompting a reevaluation of investment strategies [11]