Falling prices and rising yields of U.S. Treasury bonds represent a decline in the market's demand for U.S. Treasury bonds and a more pessimistic expectation of the U.S. economic situation.

There is a special inverse relationship between U.S. Treasury bond prices and yields. When U.S. Treasury bond prices fall, their yields rise.

The rise and fall of U.S. Treasury bond yields reflects the market's demand for U.S. Treasury bonds and expectations of the U.S. economic situation.

Specifically, the rise and fall of U.S. Treasury bond yields represent changes in market sentiment and expectations in the following aspects:

Monetary policy expectations: If the market expects the Federal Reserve to raise interest rates, then newly issued U.S. Treasury bonds will offer higher coupon rates, causing the price of old Treasury bonds to fall and the yield to rise. Conversely, if the market expects interest rates to fall, the relative value of old Treasury bonds will increase, leading to rising prices and falling yields.

Economic growth expectations: Expectations of slower economic growth may cause investors to seek safe haven assets such as U.S. Treasury bonds, thereby pushing up Treasury bond prices and lowering yields. Conversely, if economic growth expectations are strong, investors may shift funds to riskier assets with higher expected returns, causing Treasury bond prices to fall and yields to rise.

Inflation expectations: High inflation expectations reduce the attractiveness of fixed-income bonds because inflation erodes the actual return of bonds.

Therefore, if the market expects future inflation to rise, Treasury prices may fall and yields may rise. Conversely, if inflation expectations fall, Treasury prices may rise and yields may fall.

Risk appetite: When market risk appetite decreases, investors may seek safe bond investments, causing Treasury prices to rise and yields to fall. Conversely, when risk appetite increases, investors may turn to higher-risk investments, causing Treasury prices to fall and yields to rise.

Supply and demand: Changes in supply and demand in global financial markets can also affect U.S. Treasury yields. For example, if global central banks begin to reduce their holdings of U.S. Treasury bonds, or the U.S. government increases its issuance of Treasury bonds, it may cause Treasury prices to fall and yields to rise.