Insights

The Treasury yield curve bull flattened in September, with the 10-year yield falling by eight basis points.

Above-average yields, solid investor demand, and stable credit fundamentals are counterbalanced by tight spreads, rising event risk, and a slowing labor market driving a modest overweight to the corporate sector, with a defensive posture.

In August 2025, the financial markets were marked by a mix of economic resilience and shifting policy expectations.

Treasury yields increased in July on favorable economic data and the Federal Reserve’s decision to hold rates steady.