As I said before, there's no need to panic (Part 2): Short-term US Treasury bonds are rising. ┈➤ There's no expectation of a recession at all. If there were a recession expectation, the market would sell short-term US Treasury bonds and buy long-term ones, resulting in an inverted yield curve. Now, the opposite is true: the market is selling long-term US Treasury bonds but buying short-term ones. This is due to expectations of future inflation and a depreciating dollar. There are also two hidden expectations here: First, US Treasury bonds will expand even further in the future. Second, the Federal Reserve will expand its balance sheet (QE) in line with the expansion of US Treasury bonds. Therefore, the market has no expectation of a recession at all. ┈➤ The rise in short-term US Treasury bonds may be beneficial to improving the US Treasury market. Because of the rise in short-term US Treasury bonds, the Treasury can issue more short-term US Treasury bonds at a lower cost. Then, the funds raised can be used to redeem long-term US Treasury bonds. This reduces the supply of long-term US Treasury bonds, which can suppress the decline in the price of long-term US Treasury bonds, that is, suppress the continued rise in long-term US Treasury bond yields. This is something the Treasury can do to mitigate the rise in US Treasury bond yields.