Per Woofun AI, Castle Securities disclosed that Federal Reserve Chairman Waller's steadfast commitment to curbing inflation has bolstered the central bank's credibility, a factor now underpinning U.S. long-term Treasury yields while simultaneously dampening term premiums.

Following the recent Federal Reserve policy meeting, activity within the $31 trillion U.S. Treasury market revealed that long-term yields exhibited greater stability relative to the two-year yields, which remain highly sensitive to immediate policy shifts. Nohshad Shah, head of fixed income sales at the firm, noted that 'A highly credible Federal Reserve should benefit long-end rate performance,' highlighting the structural advantage for longer-duration assets in the current macroeconomic environment.