Understanding the Recent Decline in U.S. Treasury Bonds

Recently, there have been rumors in the market about George Soros shorting U.S. Treasuries, leading many to believe this is the primary cause of the bond's decline. However, upon deeper analysis, we can identify several key factors contributing to the downturn in U.S. bonds. Firstly, the continued rise in yields has caused bond prices to fall, primarily driven by market concerns over the potential re-election of the Republican Party's Trump, which is expected to further increase the deficit. Additionally, the Federal Reserve's balance sheet reduction policy has diminished the demand for Treasury purchases, exacerbating supply pressures in the market. Experts suggest that the market's overreaction might have led to misunderstandings regarding Soros's role, as he is not the primary market manipulator in this instance. The latest changes in U.S. bonds may also signal the economic direction of the future. With the upcoming elections in the United States, significant fluctuations are anticipated, potentially impacting the overall trajectory of the Taiwanese stock market. The question of whether investors should decrease their holdings or adjust their strategies during this sensitive period is worth noting, as the decline in U.S. bonds serves as a reminder for investors to carefully monitor future market changes.