Financial English — Describe Changes, Explain Rates & Yields

Financial English: Describe a Change → Explain Why → Give a Careful View

Mục tiêu: Không chỉ biết nghĩa của từ, mà có thể dùng từ để nói thành câu về kinh tế Mỹ và Việt Nam.

1. Six useful words + two important chunks

Cần nhớ: rise không cần tân ngữ khi nói một thứ tự tăng: Rates rose. increase có thể không có tân ngữ (Rates increased) hoặc có tân ngữ (The bank increased rates). raise thường cần tân ngữ: The Fed raised rates. Không nói The Fed rose rates.

Changes: from, to, by — nói đúng ý

• The yield rose from 4.10% to 4.28%. → nói điểm đầu và điểm cuối.
• The yield rose by 0.18 percentage points (= 18 basis points). → nói mức thay đổi.
• Expectations fell from 3.8% to 3.5%. → giảm 0.3 percentage points.
• The figure reached 3.9%. → đạt 3.9%, không nói từ đâu tăng lên.
• Rates stayed high. → không nhất thiết có nghĩa lãi suất tiếp tục tăng.
• The outlook remains uncertain. → chưa thể khẳng định chắc chắn.

Tránh nhầm: 3.6% → 3.9% is an increase of 0.3 percentage points (= 30 basis points), not an increase of 0.3 percent. Percent (%) and percentage points (pp) are different.

2. Five connectors to make a clear explanation

Say 3 sentences, not one very long sentence

Weak: Inflation high rates rise yield up stock down.

Clearer:

1. Inflation expectations increased.
2. This could make investors expect interest rates to stay high.
3. As a result, Treasury yields might rise, but the outcome is uncertain.

Tip: Một câu = một quan hệ kinh tế. Giữ ý ngắn, rồi dùng từ nối để ghép ý.

3. Interest rate vs Treasury yield — not the same thing

Fed policy interest rate (lãi suất chính sách): the Federal Reserve chooses a target range for a very short-term interest rate to influence borrowing, demand and inflation.

Treasury yield (lợi suất trái phiếu Kho bạc Mỹ): the return implied by the market price of a US Treasury security, usually quoted for a maturity such as 2-year or 10-year. When the price of a fixed-payment bond falls, its yield generally rises.

Important contrast:

• The Fed held its policy rate steady, but the 10-year Treasury yield rose. ✅ Possible.
• The Fed sets all Treasury yields. ❌ No. Market yields also reflect expectations of future policy, inflation and investor risk compensation.
• The yield reached 5.58%, so the Fed raised its policy rate to 5.58%. ❌ Not a valid inference.

A very short explanation for a colleague:

The Fed controls its short-term policy-rate target. Treasury yields are determined in the bond market. They can move in the same direction, but they do not always move together.

4. Your idea: US debt → higher yields? Possibly, but separate the claims

Trinh's starting idea:

I think Fed rates could reach 5.58%. The main reason is that the US has a large amount of government debt, so investors may demand higher yields to compensate for additional risk.

English repair: investors require, not investors requires. Use government debt or a high level of government debt, not a large debt balance in casual discussion.

Economics repair: A large debt supply or investor concern can put upward pressure on Treasury yields, especially longer-term yields. That does not automatically mean the Fed will raise its policy rate. A Fed policy decision is more directly tied to inflation, employment and economic conditions. Separate the two mechanisms.

Better two-sentence version:

Large US government borrowing could put upward pressure on Treasury yields if investors demand more compensation. However, whether the Fed policy rate reaches 5.58% depends on inflation, economic activity and the Fed's decisions.

Discussion question: Which claim refers to the bond market? Which refers to the Fed's policy decision?

5. Mini macro reading: United States ↔ Vietnam

This is an explanatory learning example, not a report of live market data.

The United States and Vietnam are connected through trade, financial markets and the US dollar. When US interest rates stay high, dollar-denominated assets may look more attractive to some investors. This can put pressure on other currencies, including the Vietnamese dong, although exchange rates depend on many factors. In Vietnam, businesses may face changes in import costs, export competitiveness and financing conditions. Competition from China can also affect some Vietnamese exporters, depending on products, prices and demand. These relationships are possible economic channels, not automatic outcomes. To make a stronger forecast, we need current data and a clear explanation.

Comprehension check (oral):

1. What could make US dollar assets more attractive?
2. Does a high US policy rate always weaken the dong?
3. How could competition from China affect a Vietnamese exporter?
4. Give one reason you need more data before predicting an exchange-rate move.

Your turn — say 4 short sentences

Imagine US interest rates stay high. Discuss one possible impact on Vietnam. Use this speaking map:

FACT / CONDITION → US interest rates may stay high.

REASON / CHANNEL → Because ...

POSSIBLE EFFECT → This could ...

LIMIT → However, the outlook remains uncertain because ...

6. Fast self-check

Decide which sentence is correct; then say the full sentence aloud.

1. A. The yield rose to 4.5%. B. The yield raised to 4.5%.
2. A. The Fed rose rates. B. The Fed raised rates.
3. A. Rates may stay high. B. Rates may stay highly.
4. A. The figure reached 3.9%. B. The figure reached to 3.9%.
5. A. Investors requires a higher yield. B. Investors require a higher yield.

Answer key: 1A; 2B; 3A; 4A; 5B.

Optional further reading (English)

• Federal Reserve: How monetary policy works
• New York Fed: Why Treasury yields move
• US Treasury & State Bank of Vietnam: bilateral macroeconomic dialogue (May 2026)

For homework, focus on Sections 1–3 first. Sections 4–5 prepare the US–Vietnam macro discussion for the next lesson.