Offline24h

UST 2Y yield held steady at 3.52% while 10Y eased 1bp to 4.18% amid light trading, steepening the 2s10s curve to ~66bp and signaling persistent term premium expansion. IG corporates retreated -0.30% with spreads widening 7bp over Treasuries on sector headwinds in tech and media; HY dipped -0.13%, underperforming by 17bp as supply hit $7.1B despite $543M inflows. MBS and EM debt pulled back alongside core rates while munis stayed resilient, absorbing $10.6B supply with flat yields and $410M ETF inflows from MMFs. Hawkish Fed cut lingers, capping rally as labor data reinforces 4.6% unemployment peak, boosting QT end bets but lifting neutral rate views. Curve likely stays steep into year-end on fiscal supply surge and muted issuance; credit tightens selectively in BB/B segments, favoring intermediate duration and TIPS for convexity amid sticky inflation risks. Portfolio tilt toward quality issuers hedges volatility, with 2026 total returns anchored in coupons over price gains as growth holds firm.