According to a research report released by Cathay Pacific Haitong, the Federal Reserve's interest rate hike in September was a reshaping of the Fed's credibility. It was the beginning of Walsh's expression of independence. It is of great significance as an iconic node. The beginning of a new interest rate hike cycle may bring about a new logic of asset price interpretation. A “hawkish” interest rate hike will flatten the US bond interest rate curve, put pressure on short-term liquidity-sensitive valuations, and increase the allocation value of US long-term bonds, but we believe that geography is still the decisive variable.

According to a research report released by Cathay Pacific Haitong, the Federal Reserve's interest rate hike in September was a reshaping of the Fed's credibility. It was the beginning of Walsh's expression of independence. It is of great significance as an iconic node. The beginning of a new interest rate hike cycle may bring about a new logic of asset price interpretation. A “hawkish” interest rate hike will flatten the US bond interest rate curve, put pressure on short-term liquidity-sensitive valuations, and increase the allocation value of US long-term bonds, but we believe that geography is still the decisive variable.