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UST yields traded tight, with 10Y oscillating around 4.07% to 4.15%, down nearly 2bp session-over-session and flat week-on-week. Fed funds futures imply ~60% probability for a Fed cut after December, following NY Fed commentary and continued weak labor data. 2Y rose modestly to 3.61%, echoing slight curve steepening as front-end outperformed belly and long-end, supported by revived risk appetite and technical demand for cash alternatives.​ Global bond issuance reached unprecedented levels in 2025, totaling $5.95trn, driven largely by corporate refinancing rather than new capital requirements. Spreads remain resilient with IG tightening pronounced at longer tenors. Eurozone core and UK supply dropped after cyclically heavy issuance in prior months, pressuring prices higher as BoE disinflation opens the door to early rate cuts in gilts while ECB holds steady.​ Emerging market local bonds outperformed globally, buoyed by strong Latin American currencies and favorable tariff outcomes. Relief from tariff pressure and Fed easing fostered persistent inflows, leaving EM spreads hovering near multi-decade tights. Risk premia for credit may widen but remain attractive versus compressed yields for sovereigns. Municipal bonds and agency MBS continued to attract broad demand, particularly from institutional crossover buyers seeking yield enhancement. Technicals remain constructive with tax-exempt yields rivalling taxable rates and net issuance low. US funding market volatility moderated as repo pressures eased post government reopening.​ Sentiment shifted to neutral from positive on both UST and EU core as entry levels normalize, creating modestly more compelling relative value in US TIPS, UK gilts, select IG euro and UK corporates. Duration resumes its growth hedge role amid downside risks, but the market discounts recession in the near term. Investors remain focused on inflation path and the pace of policy divergence among Fed, ECB, and BoE.