/kloc-what does the soaring yield of 0/0-year US bonds mean?
The yields of 1 and 10-year US bonds refer to the annualized yields of 10-year US bonds, which are negatively related to the price of US bonds. When the price of American debt rises, the yield decreases, and when the price of American debt falls, the yield increases. Therefore, the soaring yield of 10-year US bonds means that the price of US bonds has fallen.
2. The increase of US bond yield is equivalent to the increase of global benchmark market interest rate, which means the increase of long-term borrowing cost. It may affect the financing plans of enterprises and investors, delay or reduce loans, and thus have a negative impact on consumption and investment.
What is the impact on A shares?
The rise in the yield of US 10-year treasury bonds has a certain positive impact on A shares, but the impact is limited.
The rise in the yield of US debt means that the interest repayment burden of the US government will increase in the future, and the financial pressure will increase. Considering this in many ways may lead to investors holding US debt selling off US debt sharply, triggering a crisis in the US domestic repo market and impacting the US dollar exchange rate.
The selling behavior of US debt holders has intensified, and some funds flowing out of the US 10-year treasury bond market may turn to the stock market and enter the China A-share market, which has a certain positive impact on the growth of the A-share index.
However, at present, the proportion of foreign investment in the A-share market is very small, so the rise of US bond yield is not necessarily related to the trend of A-shares, and the impact may be more limited to the short-term disturbance of investor sentiment.