What is the reason for the rise in U.S. Treasury yields?

The debt ceiling issue in the United States has been very violent recently. In particular, Yellen has repeatedly called for Congress to pass a bill to resolve the debt ceiling as soon as possible, otherwise the financial resources will be exhausted on October 18, and the US debt will face the risk of default. The news continues to ferment in the market.

This has led to rising expectations of the default risk of U.S. Treasury bonds, prompting the market's risk aversion to heat up, and the sale of some bonds has raised the yield of Treasury bonds to a certain extent. Assuming that U.S. debt does default in the later period, the interest rate increase this time may be even more pronounced.

But in fact, individuals don’t actually think that a default will happen, especially now that both houses of Congress are dominated by the Democrats as the majority party, there are still many ways to solve the debt ceiling, as long as the Democrats do not continue with the Republicans. Play the cowardly game and assume the responsibility of issuing bonds, and the risk of default can be solved immediately. In fact, the Democratic Party is also actively taking actions to solve this thorny issue recently, and the effect is still there.