Bond yields ease as central banks signal caution

Government bond yields fell after several central banks indicated a more cautious approach to further rate moves. Investors had been positioning for the possibility of additional tightening; the latest statements suggest a longer pause and greater emphasis on incoming data.

Treasury and European government bonds rallied, while equity indices were mixed. Analysts note that the reaction was most pronounced in rate-sensitive sectors. The next round of inflation and employment data will likely determine whether this shift in tone is sustained.