Core Viewpoint - The U.S. Treasury market is under pressure with rising yields, influenced by cautious statements from Federal Reserve officials regarding interest rate cuts and a surge in corporate debt supply [2][3] Group 1: Treasury Yield Movements - On November 3, U.S. Treasury yields rose across the board, with the 10-year yield increasing by 2.71 basis points to 4.1046%, the 2-year yield up by 2.47 basis points to 3.5984%, and the 30-year yield rising by 3.68 basis points to 4.6879% [2] - The yield curve has shifted upward, reflecting a pessimistic sentiment in the market, particularly with long-term bonds showing significant weakness [2] Group 2: Economic and Political Context - The ongoing U.S. government shutdown, which began on October 1, is on track to become the longest in history, disrupting the release of key economic data and increasing uncertainty for policymakers and investors regarding inflation and employment trends [2] - Federal Reserve Governor Cook indicated that the decision on potential rate cuts in December will depend on information available between now and then, highlighting the risks associated with maintaining high rates and the potential consequences of aggressive cuts [2][3] Group 3: Market Sentiment and Future Outlook - Market sentiment has been affected by the rapid decline in Treasury yields, with expectations for significant rate cuts being tempered by recent comments from Fed Chair Powell [2] - Cook emphasized the importance of not acting blindly, as the lack of recent official data on employment, inflation, and economic growth necessitates careful analysis of available administrative and private sector data [2]