Market Synopsis 10.7.25

Bond Market Recap (Week of October 6–10, 2025)

General yields have been volatile this week as global and domestic uncertainty rattled markets. U.S. Treasury yields, particularly on the long end, came under pressure amid the ongoing government shutdown, soft economic data, and political instability abroad. Spreads remained under strain, with investors cautious about duration risk and the potential for further monetary tightening. The yield curve (10-year minus 2-year) held positive at approximately 0.58%, signaling expectations of a gradual economic slowdown rather than an abrupt recession. Looking ahead, market attention will focus on Fed speak and the limited economic data available until the government shutdown is resolved.