A surprise U-turn by the UK government on the fiscal package and a weaker than expected US ISM Manufacturing (50.9 vs. 52.0 expected) have driven a large fall in global yields. The US 10yr is down -18.6bps to 3.64%, and at one point hit a low of 3.57%. The US 2yr yield also fell around 16bps to 4.12% meaning the 2/10s curve flattened to -47.9bps. The moves have been reflected in real yields with the 10yr TIP yield falling -24.4bps to 1.43%, while the implied breakeven rose 5bps 2.20%. The lift in break-evens comes alongside a surge in oil prices with Brent oil up 4.7% ahead of OPEC+ tonight. Even though yields have ... (full story)