The key yield curve of US Treasury bonds sends a warning signal: the Walsh era may see interest rates remain higher for longer.

```htmlJinse Finance reported that on May 26, a key U.S. Treasury yield spread indicator narrowed to its lowest level in a year, as traders increased bets that the Federal Reserve may keep interest rates at higher levels for a longer period under the leadership of new Chair Kevin Walsh. The spread between 5-year and 30-year Treasury yields has narrowed to about 81 basis points, the lowest level since May 2025. This is an important indicator measuring the premium investors require to hold longer-term U.S. Treasuries. The trend is mainly driven by the sell-off of short-term Treasuries, which are more sensitive to changes in Federal Reserve policy expectations. As of the close last Friday, the spread between 2-year and 30-year Treasury yields also narrowed to the lowest level since July.```