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UST 10Y yield eased 2bp to 4.14% post-Fed’s 25bp cut to 3.50%-3.75% range, signaling potential pause in easing amid stronger 2025 GDP forecast at 2.3% and sticky inflation near 2.8% PCE. 2Y yield dipped 2bp to 3.52% from 3.54%, 3Y to 3.58%, steepening 2s10s curve by 1bp to ~62bp as long-end underperformed on fiscal deficit concerns and hawkish global tones. IG corporate spreads tightened to historic 74bp OAS, with HY corporates gaining 12bp vs Treasuries on $1.2B inflows, while munis held steady amid muted supply. Global long-end yields hit 16-year highs, reflecting faded rate-cut bets from ECB, BoJ hike signals, and Aussie hawkishness. Curve steepening favors duration extension in belly, but IG/HY relative value shines with tight spreads; watch fiscal risks and Jan data for next pivot, positioning barbell for volatility.

UST 10Y yield held steady at 4.25%, influenced by Fed meeting forward guidance, with markets pricing 85% odds for a 25bp cut in December, though 2026 total easing expectations trimmed to 75bp amid inflation resilience and fiscal deficit concerns. The 2Y/10Y curve steepened mildly by 5bp, highlighting short-end policy uncertainty, as investors shifted toward extending duration to capture potential bull steepener dynamics. IG corporate spreads stayed at 95bp, while HY widened to 375bp, with credit rotation favoring high-quality issuers to sidestep liquidity risks.​

MBS spreads tightened 2bp to +105bp, supported by balanced supply-demand and stable housing data, with convexity hedging bolstering relative value trades. CLO AAA spreads compressed to +140bp, secondary tranches rose 15bp, signaling robust leveraged loan fundamentals yet rising regulatory headwinds. EM hard currency debt yields fell to 6.8%, buoyed by USD weakness boosting sentiment, spreads narrowing 10bp to +250bp, favoring Brazil and Mexico sovereign arbitrage plays.​

Post-Fed meeting, the yield curve anticipates continued bear steepening, testing 10Y upper bound at 4.40%; soft landing data would favor duration extension to intermediate sector. Credit volatility intensifies amid fiscal policy spillovers, recommending IRS overlays to capture spread widening tail risks. Overall fixed income backdrop remains constructive, with annualized total return potential of 4-6%, prioritizing sovereigns and prime ABS allocations.

UST yields rose amid Fed anticipation, with 10Y reaching 4.35%+20bp and 2Y at 4.10%+15bp, flattening the curve by 5bp as short-end lagged. IG credit spreads tightened 2bp to IG19, driven by strong demand for high-grade corporates amid stable macro data, while HY held at HY325 with energy sector outperformance. MBS lagged Treasuries by +3bp on prepay fears, but agency spreads narrowed slightly to +105bp over UST; CLOs saw robust issuance at SOFR+520bp, buoyed by levered loan recovery. JGB 10Y climbed to 1.05%+8bp on BoJ hike signals, supporting yen strength and regional yield lift. Swap spreads widened 1bp across 2Y-10Y tenors, reflecting bank hedging flows.​

Volatility ticked up modestly to VIX4.2 equivalent in rates options, but positioning remains long duration with CTAs neutral. IG new issuance priced tight at +110bp area, met solid coverage ratios >4x; EM external debt dipped -1bp to 420bp, led by LatAm sovereigns. Oil at $72/bbl capped inflation pass-through, aiding soft-landing narrative.

Outlook favors curve steepener trades as Fed cuts 25bp in Dec, targeting 3.75-4.00% fed funds by mid-2026; duration extension prudent below 4.20% 10Y, paired with IG over-weight vs barbell HY/MBS. Credit selection key—avoid cyclicals, favor tech/AI-linked issuers amid capex boom. Risks tilt to hawkish Powell rhetoric sparking 10Y spike to 4.50%, prompting tactical short-end roll-down. Risk-reward skews positive for 6-12M horizon, with total return potential +4-6% on benchmark portfolios.

UST yields ticked higher amid positioning for the upcoming Fed meeting, with 10Y rising to 4.13% on Dec 8 before easing slightly to 4.134%. 2Y yield climbed 4bp to 3.61%, while 3Y reached 3.64%, steepening the curve as short-end lagged longer maturities. IG corporates outperformed Treasuries by 27bp last week despite -0.47% total return, with spreads tightening on $6.1B inflows and robust supply absorption exceeding full-year forecasts. HY corporates gained 0.12% and senior loans +0.27%, beating benchmarks by 33bp amid $1.2B HY inflows, though loan funds saw outflows. Muni yields held steady with $736M inflows against $16.6B supply, supported by reinvestment cash. Curve steepening reflects resilient labor data and 89% odds of 25bp Fed cut, tempering aggressive easing bets. Credit sectors resilient as spreads near multi-year tights (IG OAS ~74bp), but tariff risks and equity volatility cap upside. Outlook favors duration extension in intermediates if Fed delivers, yet persistent inflation and fiscal dynamics support elevated 10Y/30Y yields around 4.8%. Portfolio managers eye barbell strategies blending IG/HY for yield pickup while hedging curve risk via swaps. Volatility may rise post-FOMC, with auctions testing demand.

UST 10Y yield rose 5bp to 4.11% amid cooler PCE data at 2.8% YoY, signaling persistent inflation pressures despite Fed cut expectations holding at 75% for December. 2Y yield edged up 2bp to 3.55%, while 3Y increased 2bp to 3.53%, steepening the front-end curve as short-end rates reflect hawkish regional Fed rhetoric offset by NY Fed dovishness. IG spreads tightened 1bp to 80bp OAS, supported by $6B inflows against heavy $45B supply, though still near June wides; HY spreads held at 292bp, buoyed by low default risks and $1.1B fund flows.​

Treasuries rallied across the curve post-jobs report adding 119k jobs with unemployment at 4.4%, boosting odds of policy easing while term premium expanded on fiscal concerns. IG corporates gained 0.40% but underperformed Treasuries by -15bp due to mixed technicals; munis absorbed $14.1B supply with steady yields and $130M inflows. MBS and EM debt advanced, while senior loans dipped amid broader risk-off in preferreds.​

Outlook favors duration extension if Fed delivers cuts, with 10Y projected to 4.00% QoQ and 3.77% in 12 months, though rising term premium caps upside. Credit value persists in HY at +495bp spreads historically tight yet resilient to 2.0-2.5% GDP growth; IG offers carry but vulnerable to widening if supply persists. Portfolio tilt toward curve steepeners and selective IG/HY overweight, hedging convexity risks in volatile vol environment.

UST 10Y yield fell 3bp to 4.06% amid dovish Fed signals and weak ADP payrolls dropping 32k, signaling labor softening. Curve flattened as 2Y declined 2bp to 3.49% and 3Y dropped 4bp to 3.50%, while 30Y eased 1bp to 4.73%. IG corporate spreads widened 3bp to 85bp on heavy $45B supply despite $6B inflows, with new deals 4x oversubscribed. Markets priced 89% odds for 25bp Fed cut next week, ending QT but eyeing higher bill purchases to ease funding stress. IG corporates gained 0.40% but trailed Treasuries by -15bp; HY and EM credits advanced on resilient growth outlook. Forward rates decoupled, 5y1y down 80bp but 10y1y up 40bp, hinting long-end term premium rise from fiscal deficits. Credit remains attractive with tight spreads offering yield protection; longs recover in Q4 but lag YTD. Outlook favors duration extension if Dec cut confirms, though Japan hike risks repatriation pressure on UST; watch nonfarm payrolls for rate path clues.

Fixed income markets experienced modest yield compression across key UST tenors, with 10Y yields edging down by approximately 2bp to near 4.08%, reflecting cautious investor sentiment amid dovish signals from the Fed. Shorter-dated USTs such as 2Y and 3Y also traded slightly lower, anchoring the front end of the curve. Investment grade corporates showed slight gains but underperformed similar-duration Treasuries by around 15bp, as spreads widened modestly by about 3bp to 85bp, the widest since June, pressured by elevated new issuance supply which exceeded consensus by nearly 50%. High yield and municipal bond sectors absorbed significant supply with generally positive reception, though fund flows were somewhat mixed, with some selective outflows offset by strong demand for new issues supported by heavy oversubscription. Overall, technical factors remain mixed: robust new issuance is balanced by ongoing inflows, sustaining a relatively stable but cautious credit market environment. Looking ahead, fixed income is expected to remain sensitive to Fed rate guidance and key economic indicators, with potential volatility around policy shifts influencing yield curve dynamics and credit spreads in the near term.

UST 10Y yield held steady at 4.10% after rising nearly 7bp to 4.08% on recent trading, driven by BoJ hike hints prompting repatriation flows and heavy corporate supply. 2Y yield fell 2.4bp to 3.515%, steepening the curve with 10Y-2Y spread widening to ~0.55-0.59% amid softening labor data and Fed cut odds at 88% for next week. IG corporate spreads edged wider by 3bp to 85bp on $45B supply outpacing $6B inflows, though new deals oversubscribed 4x with tight 1.3bp concessions. HY spreads tightened modestly, supported by risk recovery in equities and crypto, while MBS and EM debt advanced on dovish Fed rhetoric. Curve rallied earlier on NY Fed Williams’ cut advocacy post-jobs report showing 119K adds but 4.4% unemployment.​

Outlook favors further UST downside if PCE and ADP data confirm labor weakness, pricing 25bp Fed trim while BoJ dynamics cap rallies. IG remains resilient at historical tights despite supply, but watch maturity walls and recession risks for 115-200bp spread peaks post-downturn. Duration extension viable in 2Y-5Y bucket for yield grab, hedging long-end vol amid 4.00% Q-end 10Y forecasts. Credit rotation to HY/EM attractive on tight IG value, balancing softening growth with solid balance sheets. Volatility persists on policy cross-currents, favoring barbell strategies over curve steepeners.

The fixed income market saw marginally lower UST yields across key maturities, with the 10Y yield ending about 2bp down near 4.08%. The 2Y and 3Y notes traded slightly lower, tracking subdued rate hike expectations amid dovish signals from central banks. Credit spreads on investment grade corporates widened modestly, registering a 3bp increase to around 85bp, reflecting a cautious stance despite resilient demand and oversubscribed new issues. High yield credit spreads remain near multi-year tights, supported by improving fundamentals and lower default risks, while loan and preferred segments showed some retreat. Overall, Treasury curve positioning favored modest flattening as front-end yields adjusted to expectations of a pause or rate cuts ahead, offsetting duration sensitivity in longer maturities. Market participants brace for volatility due to fiscal uncertainties and global economic concerns, with rate volatility expected to pick up and credit spreads influenced by technical factors such as supply-demand imbalances. The USD continues to weaken against major currencies, prompted by divergent central bank policies and a softer U.S. labor market outlook, which may influence fixed income flows and currency hedging strategies in the near term.

UST 10Y yield edged down 1bp to 4.00% amid mixed economic signals, with 2Y at 3.68% (-1bp) and 30Y at 4.82% (-0.5bp), steepening the curve slightly. IG corporate spreads widened 3bp to 85bp on heavy $45B supply despite $6B inflows, lagging Treasuries by -15bp. HY underperformed with spreads firming amid higher base rates, while MBS and EM debt advanced on dovish Fed rhetoric lifting cut odds to 75%.​

Treasuries rallied post-jobs data showing 119k adds and 4.4% unemployment, offsetting hawkish regional Fed comments. Municipal yields held steady with $14.1B issuance absorbed via $130M inflows. Global DM rates trended higher earlier but stabilized, with Bunds and Gilts flat.​

Outlook favors duration extension if Fed delivers December cut, targeting 4%-5% UST range amid rising term premiums. Credit selection leans IG over HY given tight spreads; watch CLO/ABS for relative value as mom-and-pop fixed maturity funds distort flows. Volatility persists around FOMC path revisions and PMI data.