According to CICC's research report, in the near term, a US interest rate cut amidst high inflationary pressures could catalyze accelerated economic recovery and further inflation escalation. This scenario would steepen the short-end of the US Treasury yield curve while flattening the long-end. It is anticipated that the 10-year US Treasury yield may surge to approximately 4.8% within the year. Additionally, the continuous issuance of bonds and liquidity tightening in the forthcoming one to two months are expected to expedite this trend. In the long run, should fiscal dominance be gradually implemented over the next one to two years, the entire US Treasury yield curve could shift downwards. Short-term rates would decrease alongside interest rate cuts, and monetary policy might stimulate long-term bond demand through direct measures (e.g., quantitative easing) or indirect means (e.g., easing financial regulations) to reduce term premiums. However, it's crucial to note that if interest rates remain suppressed during economic recovery, CICC forecasts a persistent rise in the inflation center.