Global Yields Ease as Sentiment Softens

• Markets leaned cautious overnight as investors weighed geopolitical developments, shifting US trade policy expectations and broader uncertainty around ongoing AI disruption, leaving a defensive tone across asset classes.
• That shift in sentiment drove flows into safe-haven assets, with government bond markets across the US, Europe and local futures attracting steady buying interest.
• In the US, Treasuries firmed across the curve as near-term growth concerns took precedence over tariff-revenue and supply considerations.
• The 10-year Treasury yield traded near 4.02%, about 6bps lower than where it finished last week.
• Australian bonds followed the global lead, with the 10-year yield easing to around 4.71% from 4.74%.