Group 1 - UBS Asset Management's Kevin Zhao predicts that the Federal Reserve will have to shift towards interest rate hikes next year due to economic growth recovery, leading to a significant widening of U.S. Treasury yield spreads [1] - Zhao's prediction contrasts sharply with the market's general expectation, which anticipates further rate cuts from the Fed, including two more cuts this year and five by the end of 2026 [1] - Zhao believes that if economic growth rebounds, unemployment decreases, and inflation remains high, the rationale for the Fed to raise rates will become evident by mid-next year [1] Group 2 - The yield spread between two-year and ten-year U.S. Treasury bonds has narrowed to about 50 basis points, with Zhao waiting for it to narrow to approximately 40 basis points before initiating a trade to profit from a steepening yield curve [2] - The Global Dynamic Bond Fund managed by Zhao has achieved a return of over 7% this year, outperforming 89% of its peers [2]