Our Scans · (FS.5.01) Bond Market · Weekly Summary

• [New] We expect pension investors' appetite for emerging markets equities and government bonds, as well as US high yield bonds, to be influenced by a balance of return potential, risk considerations and diversification objectives in 2025. AXA IM UK
• [New] To wit, Federal debt service costs on what will soon be $40 trillion of public debt will now rise by $700 billion per year in the face of even a 150 basis points rise in bond yields. investing.com
• [New] For investors considering Chilean sovereign debt, the new Euro 2035 bonds may represent an attractive opportunity up to a spread of +120 basis points over swaps. CTOL Digital Business and Technology News
• [New] Faltering US exceptionalism has supported a broader perspective on alternative opportunities, including emerging markets equities and bonds that have long been overlooked by investors. VanEck ViewPoint Q2 2025
• [New] Global bond markets remain volatile, with rising yields early in 2025 providing selective opportunities, but recent declines warrant a more cautious approach to duration and credit risk. Seeking Alpha
• [New] A major risk for bond investors is that the US will cut taxes under Trump and not decrease spending, creating a ballooning deficit consistent with what occurred in his first administration. Stillpoint Capital
• The bill as currently written will increase the US debt and deficit substantially and is causing some unease in bond markets. Ferguson Financial Planning | CI Assante Wealth Managem
• Escalation of geopolitical risks in the Middle East and direct US military involvement against Iran sharply increases risk premium, which typically leads to capital outflows from stocks and corporate bonds in favor of safe havens - gold, government bonds, and refuge currencies. Adler's Insights
• Concerns over inflation and Fed rate hikes have likely led foreign investors to reduce duration risk, favoring T-bills over notes and bonds. The BondBeat
• Bond markets expected a higher surplus (Rs 3 trillion), so the widening of the CRB range was unexpected and may cause slight disappointment. IBPS Guide
• European capital will continue flowing into US dollar stablecoins, which typically invest in US Treasuries, and away from European government bonds. FX Markets
• Much of the recent rise in longer-term Treasury yields reflects an elevated term premium - the extra compensation investors demand for the level of risk over the life of a bond. RWA Wealth Partners
• Higher inflation expectations could push up yields on U.S. Treasury bonds and German bunds, increasing borrowing costs. World Economic Trends Report
• Global bond and currency markets have already started to price in a 'higher for longer' rate outlook, driven by the US administration's protectionist and expansionary fiscal policies, which are expected to lead to stickier inflation. QuotedData
• US Government Bonds Improved business activity could reduce demand for safe-haven government bonds, potentially leading to higher yields. FinancialJuice
• For bond markets, there could be a greater reliance on domestic demand to support US Treasuries. InCred Global Wealth
• Bond markets seem to have put more emphasis on the inflation risk, as yields for the Government of Canada five-year bond rose to the 2.9-per-cent level. The Globe and Mail

Last updated: 08 July 2025