Global bond yields retreat as markets price early 2026 Fed rate cut

Government bond yields eased globally  after fresh U.S. data pointed to cooling inflation and slower job growth, prompting traders to advance expectations of a Federal Reserve rate cut to March 2026. The U.S. 10-year Treasury yield slipped to 3.96%, while Germany’s Bund yield fell to 2.29%. Asian sovereign bonds followed the move. Analysts said the soft data reinforces a gradual disinflation trend, supporting risk assets but keeping markets sensitive to energy price volatility and geopolitical developments heading into year-end. The dollar index edged lower on expectations of policy easing.