Société Générale: The U.S. government's restart may trigger greater Fluctuation in the interest rate market.

[Societe Generale: U.S. Government Reopening Could Trigger Greater Fluctuation in Interest Rate Markets] Societe Generale's interest rate strategists noted in a report that as the U.S. government ends its shutdown, interest rate volatility may rise again, with U.S. Treasury rates leading the fluctuations, while economic data may also exceed expectations in both directions. The strategists stated: “As the economic mechanisms restart, we expect U.S. dollar interest rates to exhibit the greatest fluctuations, and we maintain our view that U.S. Treasuries will outperform German bonds.” They pointed out that the upcoming inflation and employment reports are crucial for shaping market expectations regarding the Fed's interest rate path, and this data could break through the recent fluctuation range. The strategists believe that Eurozone interest rates will remain in a secondary position, as resilient data and a relatively clear European Central Bank policy path will continue to suppress market fluctuations. (Jin10)