US10Y increase to the highest from 2007 👹

10-YEAR US BOND
PROCEDURE
INCREASE
TO THE HIGHEST HIGHLIGHTS
FROM 2007

This week,
the yield (loi suat)
on the 10-year
US Treasury note
climbed to
🥶its highest level since 2007,
reaching 4.19%.

According to Bloomberg's statistical data,
the average interest rate
in 20 last year
was about 2.9%.

👹3 main reasons
why long-term treasury rates increase:

🥶Cause 1: Inflation
increased
higher than
in the past
from 2.5%

🥶Cause 2:
America's goverment
needs borrowing
soars (vut bay len, tang cao)

🥶Cause 3:
on average
the forward premium
– the compensation (den bu)
(Trung binh phan bu ky han)
that
Pinvestors (nha dau tu)
require to buy
long-term bonds
instead of (thay vi)
short-term assets
– is
in the range of 0.75 1.00 percentage point.

* This makes
the USD stronger,
making it difficult
for investors
who haven't invested (ko dau tu, tru an)
in the USD
to disburse (giai ngan) investment
in other countries,
especially
in the context (boi canh)
that Vietnam is going,
in contrast (su tuong phan, di nguoc)
to the world,
interest rates are reduced.

The most difficult thing
for the Vietnamese government
this time is to both
reduce interest rates
and stabilize (on dinh)
the exchange rate