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

• [New] Investor Pause on Tariffs / Elections: 50% U.S. tariffs and 2026 election uncertainty delay investments despite 25% M&A rise and bond demand; CNI's Washington push seeks tariff relief to protect jobs and $20 B exports. The Rio Times
• [New] Stock, bond, currency and commodity prices could become more volatile, further slowing the global economy. Desjardins.com
• [New] Eu's smart conditionality threatens to freeze recovery funds, pushing Hungary's 2025 deficit to 1% and widening bond yield spreads by 200 basis points. Ainvest
• Elevated US policy uncertainty and/or a widening of government bond yield spreads in the euro area periphery are additional upside risks. Morningstar, Inc.
• All eyes will be on the most important price in markets, the 10-year US government bond yield. Asset Strategies International
• Ongoing monitoring of default rates and issuer-specific factors will be essential for pension funds evaluating US high yield bond opportunities as spreads are historically tight. AXA IM UK
• Ongoing monitoring of default rates and issuer-specific factors will be essential for pensions evaluating U.S. high yield bond opportunities as spreads are historically tight. AXA IM US
• Following the jobs data, yields on US Treasury bonds fell sharply as markets price in a weaker US growth outlook and expected cuts in Federal Reserve interest rates. ST
• Bond markets are pricing in further economic slowdown and questioning whether the Federal Reserve will now need to cut more aggressively or put the US into recession. Australian Broadcasting Corporation
• We expect pension investors' appetite for emerging markets equities, government bonds, and U.S. high yield bonds to be influenced by a balance of return potential, risk considerations, and diversification objectives in 2025. AXA IM US
• Investors anticipate that more Fed rate hikes will occur in the future as deficits and debt grow, adding to upward pressure on bond yields. The Budget Lab at Yale
• Investors are demanding more compensation for the risk of holding long-term bonds, leading to a steepening of global yield curves. BlackRock
• Investors should monitor the OECD's push for South Korea to develop local currency CAT bonds, which could reduce reliance on foreign capital and offer higher yields. Ainvest
• A Japanese investor can earn more in long-term Japanese government bonds than in 30-year US bonds, whose yields have ticked up over 5%, after deducting the cost of hedging for exchange-rate risks. GoldSeek
• Employment recovery in Canada and first signs of inflation in China add ambiguity: some capital will continue seeking yield in risk assets (technology, emerging markets), while geopolitical and trade risks will support demand for safe havens gold and government bonds. Adler's Insights
• Gilt yields are weaker at the end of Q2 than at the start, which means that bond investors perceive there to be a lower risk in investing in UK debt than they did three months ago. Morningstar, Inc.
• Hopes for a Fed rate cut perhaps as soon as next month have also helped bond yields, as several Fed members say that they will support a cut if the inflation picture remains muted. Yahoo Finance
• 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
• 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
• 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

Last updated: 16 September 2025