On September 29 Eastern Time, long-term US Treasury yields continued to spike, with the 30-year yield hitting an intraday high of 5.623%, the highest level since June 2002. Supported by the surging yields, the US Dollar Index strengthened notably, poised for its best monthly performance since June and triggering increased volatility in global capital markets.

The soaring long-term Treasury yields are mainly attributed to stronger-than-expected US economic resilience and lingering inflation risks, keeping market expectations for sustained Federal Reserve tightening elevated. Although the New York Fed stated that further rate hikes are unlikely after the September adjustment, market participants have not fully eased tightening concerns, keeping long-term interest rates under upward pressure. Driven by higher yields, the three major US stock indexes closed slightly lower with weakened market risk appetite.

In addition, the US announced plans to release 40 million barrels of strategic petroleum reserves via swap transactions, to be delivered in November and December, aiming to stabilize global energy prices and ease domestic inflationary pressures. The global market is currently characterized by high interest rates, a strong US dollar and sluggish risk assets. Future Fed policy shifts and US inflation data will remain core factors driving global capital markets, commodities and foreign exchange trends.