Long-term US Bond Rates to Continue Rising Amid Fed Expectations

Hana Securities predicted that long-term U.S. government bond rates will continue to rise in the near term, citing solid economic indicators and expectations of additional interest rate hikes by the Federal Reserve System (Fed).

The 10-year U.S. interest rate rose by 20 basis points during the three trading days from September 23-25, while investment opinions on U.S. Treasury bonds remained 'reduced.'

Researcher Heo Seong-woo analyzed that the upward trend of interest rates is expected to continue due to a strong U.S. economy and potential additional rate hikes by the Fed.

The difference in interest rates between two and ten years widened to 30 basis points, with long-term stocks leading the rise in Treasury yields.

Hana Securities also noted that prospects of an additional rate hike next month have grown, with the market-reflected probability rising to 64 percent from less than 10 percent a month ago.