Group 1 - The U.S. bond market is experiencing turmoil as the 30-year Treasury yield approaches 5% and the 10-year yield surpasses 4.5%, contrasting with the strong rebound in the U.S. stock market [1] - Moody's has downgraded the U.S. sovereign credit rating from Aaa to Aa1 due to increasing government debt and interest payment ratios, with a stable outlook despite previous negative adjustments [3] - The U.S. federal government's interest payments on debt have exceeded $1 trillion for the first time, becoming the third-largest expenditure item, surpassing defense spending [5] Group 2 - China's holdings of U.S. Treasury bonds have fallen below those of the UK for the first time since the early 2000s, with China holding $765 billion compared to the UK's $779 billion [5] - The U.S. government is considering reducing tariffs on China in response to supply chain disruptions caused by China's rare earth export controls, highlighting the strategic importance of these materials [7] - Approximately 5% of U.S. rare earth usage is for defense, indicating China's significant influence on U.S. defense capabilities, particularly in advanced military aircraft development [7]