The United States short-term interest rates are firm, but long-term interest rates are declining

In the United States, 2-year yields remained firm, but long-term rates fell. How should we interpret this?

As fears spread over Austria's lockdown on November 22 and the new variant of the coronavirus (Omicron) found in South Africa on November 26, stocks, interest rates, currencies, and crude oil prices were affected, and U.S. mid- to long-term bond yields declined.

However, on the other hand, yields such as the 2-year rose strongly as the Fed steered toward curbing inflation.

Going forward, the economy and financial markets will continue to be influenced by the expansion of the coronavirus, but the basic determinant will be the trajectory of U.S. inflation. Regarding U.S. inflation, wage trends in the United States are likely to have a major impact.

If so, traditional analytical methods are likely to re-emerge. In other words,