Fixed Income Update 01 Oct 2026
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 1 October 2026
Global Bond Markets: Elevated Rates and Diverging Fiscal Dynamics
Global markets received some near-term relief from US–China trade talks, as tariff reductions could support trade flows despite unresolved differences over technology, critical minerals, and Taiwan.
In Asia, Japan’s bond market showed relatively stronger demand at the long end, as investors assessed opportunities across major government bond markets. The Japanese government’s expected emphasis on flexible policy responses and interest-rate considerations in determining annual debt issuance suggests greater sensitivity to borrowing costs and JGB market conditions.
Meanwhile, Indonesia’s 2027 budget remains growth-oriented but fiscally cautious, balancing continued economic support with efforts to maintain fiscal discipline. Overall, the global fixed-income environment remains shaped by elevated interest rates, fiscal concerns, and divergent monetary-policy expectations across major economies.
Regards,
KBVS Economist Team