News

Glonghui June 17｜According to Taiwan's DigiTimes, Japan's major aluminum electrolytic capacitor manufacturer Nichicon has announced price increases across its entire aluminum electrolytic capacitor product line. The main reason is that order volumes for some products have exceeded the company's current production capacity. Additionally, due to the ongoing turmoil in the Middle East, sourcing core raw materials for aluminum electrolytic capacitors has become more challenging, and the company is unable to fully absorb the increased costs.

According to Pooja Kumra from TD Securities, the sharp decline in oil prices has reduced investors' expectations for interest rate hikes by the Bank of England in the coming months. Data from the London Stock Exchange Group shows that the market is currently pricing in a total of 26 basis points of rate hikes by the Bank of England by 2026. After the United States reached a peace agreement with Iran, Brent crude prices fell from about $95 per barrel a week ago to around $79.5.

The spread between the 5-year and 30-year US Treasury yields climbed again to 79 basis points on Wednesday before pulling back, with key resistance at the 79.5 and 80 basis point levels continuing to exert valid pressure.This spread dropped to a recent low of 73 basis points on June 11, with the bottom support level formed in June around 70 basis points. The current rebound is testing these key resistance areas above.This week, the 5-year yield formed a double-bottom low at 4.14%, with the previous low at 4.12% on May 29; the 30-year yield fell intraday to 4.92%, after reaching a low of 4.91% on May 7, and there is a dense trading range near 4.90%.The market is maintaining a wait-and-see stance ahead of the Federal Reserve decision. The spread’s movement is restricted by policy uncertainty—if it breaks through 80 basis points, it may trigger stop-loss buy orders, but the wording of the decision will determine the subsequent direction.