BondsRates & credit
Yields steady amid mixed inflation
U.S. 10-year Treasury yields hold steady as markets await fresh data and Fed commentary on inflation.
The benchmark U.S. 10-year Treasury yield remains near recent levels, constrained by mixed inflation progress and awaiting fresh economic data. Fed Governor Lisa Cook highlighted that PCE inflation is estimated around 2.9% YoY, above the 2% target.
Fed policy expectations suggest a higher-for-longer stance, with Governor Cook emphasizing the need to bring inflation back to target, limiting near-term easing hopes.
Short-dated yields remain sensitive to Fed rhetoric, with core goods inflation maintaining a relatively flat pricing for aggressive cuts.
Active M&A in investment-grade corporates supports issuance expectations, with spreads staying contained amid improving risk sentiment.
European sovereign yields remain tied to ECB outlook as ongoing corporate consolidations in energy and airlines drive funding demand.
More from the Bonds desk
U.S. 10Y holds steady
The U.S. 10-year Treasury yield remains near recent levels, with direction constrained by mixed inflation progress and anticipation of fresh data.
Fed inflation outlook
Fed Governor Lisa Cook noted that PCE inflation is estimated at 2.9% YoY, above the 2% target, tempering hopes for rapid rate cuts.
Short-dated yields sensitive
Short-dated yields remain sensitive to Fed rhetoric, as sticky core goods inflation maintains a relatively flat pricing for aggressive cuts.
Credit spreads contained
Active M&A in investment-grade corporates supports issuance expectations, while spreads stay contained amid improving risk sentiment.
ECB outlook and yields
European sovereign yields remain tied to ECB outlook, as ongoing consolidations in energy and airlines drive corporate funding demand.
Corporate funding robust
Large all-cash and all-stock deals point to robust credit-market access for strategic issuers, reflecting favorable conditions for funding.
Fed policy expectations firm
Fed's higher-for-longer bias is reinforced by Cook's comments on inflation, limiting expectations for near-term policy easing.
Global central banks cautious
European deal-making and tariff-threat headlines reinforce a cautious stance among non-U.S. central banks, balancing growth risks.
By the numbers
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