The US 5-year Treasury bond yield rose above 1.20%, the highest level since February 2020. Traders continued to raise their bets on the Fed’s tightening of monetary policy. Inflationary pressures are testing the Fed’s determination to keep interest rates low when the economy recovers. The market now predicts that the benchmark interest rate will rise by nearly 0.5% by the end of 2022. The 5-year yield, which reflects the assumption of the Fed’s policy path, rose by 3.6 basis points to 1.202% on Thursday. The market predicts that by the end of next year, the Fed will raise interest rates by about 49 basis points, which is equivalent to two standard rate hikes.

With the recent rise in commodity prices, market expectations for inflation in the United States over the next five years rose to the highest level in 15 years on Thursday. The yields of some US Treasury bonds have reached a multi-month high this week, and the demand for inflation-protected bonds has kept their yields relatively stable. The difference between the two represents the level of inflation required to equalize the returns of the two.

Second-hand housing sales in the United States recorded the largest increase in a year in September, indicating that the slowdown in housing price growth and the decline in mortgage interest rates in the previous month have stimulated demand for home purchases. The National Association of Real Estate Brokers (NAR) released data on Thursday showing that second-hand housing sales in September increased by 7% from the previous month, the largest increase since September last year, with an annual sales rate of 6.29 million units. Economists surveyed by Bloomberg expected a median increase of 3.7%.

U.S. mortgage interest rates continue to climb. Freddie Mac said on Thursday that the average interest rate on a 30-year mortgage last week was 3.09%, higher than last week’s 3.05%, the highest since April 8. Although mortgage interest rates are still at historic lows, they have climbed slightly in recent weeks. Higher borrowing costs may lead to a decline in the purchasing power of potential home buyers.

The United States and the governments of five European countries reached an agreement to resolve digital tax disputes involving some US technology giants. According to a joint statement issued on Thursday, the United States, the United Kingdom, France, Italy, Spain and Austria have reached an agreement on the “transition from the existing digital service tax to a new multilateral solution,” and countries have pledged to continue discussions on this issue through constructive dialogue.

The second US Bitcoin futures ETF will be launched on Friday. A Valkyrie spokesperson stated that the Valkyrie Bitcoin Strategy ETF will begin trading on the Nasdaq on Friday. The company originally planned to trade on BTFD, but it has now changed back to the original BTF. Prior to this, the first US ProShares Bitcoin Strategy ETF (trading symbol BITO) was successfully launched, and its assets increased to more than US$1.1 billion in just two days. The turnover on the first day was close to US$1 billion, which was the second highest level in history.

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