SIFMA SmartBrief
EM bonds outperform as global rout deepens | Treasury yields drive KBW Bank Index further into correction | Investors expect more Fed hikes despite jobs slowdown
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October 2, 2026
 
 
SIFMA SmartBrief
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Morning Bell
 
Global bond markets steady after sharp yield surge
Global bond markets stabilized after a sharp sell-off that drove US borrowing costs to their highest level since 2002. The yield on the 10-year US Treasury note reached 5.34% before leveling off at 5.24%. The sell-off affected global markets, with UK gilt yields surpassing 6% and Japanese, French, and German bonds facing pressure. Investors remain cautious about potential spikes in yields and their impact on financial conditions.
Full Story: Financial Times (10/2), Reuters (10/1)
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Industry News
 
Investors expect more Fed hikes despite jobs slowdown
Bond traders are bracing for more Federal Reserve interest-rate increases, even as the US Labor Department's September employment report is expected to show a slowdown in job growth. The report is expected to show a gain of 90,000 jobs, down from 162,000 in August, but still in line with this year's average.
Full Story: Bloomberg (10/2)
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Policy Roundup
 
Treasury warns investors on tax-aware strategies
Speaking at SIFMA's Global Tax Reporting Symposium, Kevin Salinger, Treasury's acting assistant secretary for tax policy, cautioned investors against ramping up aggressive tax-reducing strategies before potential restrictions take effect. Treasury has identified transactions involving swaps, foreign currency and exchange-traded funds as potentially abusive and indicated future rules could apply retroactively.
Full Story: The Wall Street Journal (9/29)
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SEC proposes crypto custody framework for advisers, funds
The Securities and Exchange Commission has proposed new rules governing crypto asset custody by registered investment advisers and regulated funds. The proposal would permit self-custody in certain circumstances and allow state trust companies to serve as custodians. The SEC said the framework would modernize custody requirements and expand access to crypto-related investment strategies.
Full Story: Reuters (10/1), Politico Pro (subscription required) (10/1), CNBC (10/2)
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Global Update
 
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