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UST yields shifted notably higher, staging a bear-flattening move primarily driven by a sharp recalibration of near-term Federal Reserve easing expectations. The benchmark 10Y UST yield advanced 1.7bp to 4.096%, while the policy-sensitive 2Y UST yield climbed 1.9bp to 3.585%, compressing the 2Y-10Y spread marginally and indicating diminished conviction in imminent cuts. The long end experienced heavy pressure, with the 30Y UST yield rising 2.1bp, reflecting weak duration demand and signaling skepticism regarding the cycle’s depth. Rate cut probability for December dropped below 50%, a material shift predicated on hawkish commentary, particularly Fed Governor Collins asserting a “high bar” for further rate reductions, effectively capping the dovish momentum that preceded the trading session. The termination of the US government shutdown removed one key tail risk but introduced volatility by confirming a backlog of critical economic data releases, including October CPI and employment figures, maintaining elevated uncertainty and risk premiums across the curve. In credit markets, the prevailing theme was a persistent flight-to-quality: Investment Grade spreads remained resiliently tight despite robust supply, yet the riskier High Yield segment lagged, exhibiting pronounced underperformance in CCC-rated debt as investors continue prioritizing fundamental quality and liquidity. Market outlook is contingent upon the forthcoming 30Y auction performance and clarity from the delayed official economic releases, both of which pose significant tests to the current yield equilibrium and duration positioning.