Woofun AI notes that Dongfang Jincheng released a research report indicating the 10-year U.S. Treasury yield is likely to maintain an upward trend. The firm attributes this outlook to escalating geopolitical risks, specifically tensions between the U.S. and Iran and threats to close the Strait of Hormuz, which could drive up international oil prices and inflation expectations.

Additionally, Federal Reserve Chairman Waller’s upcoming congressional testimony is expected to adopt a hawkish stance on inflation control, further supporting higher real interest rates.