September 2025 – Bond Market Review
Sep 24, 2025 | Monthly Review
Economic data was mixed in August as market participants braced for a probable rate cut in September. Treasury yields were lower across the curve as the labor market and housing market showed signs of slowing. However, the consumer remained resilient as Retail Sales increased, while Consumer Confidence showed neither signs of exuberance nor caution. Core inflation levels remain above the Fed’s target, and tariff impacts remain uncertain. Given the economic outlook, our view at Chandler is for a steeper yield curve driven mainly by gradual normalization of monetary policy starting with a 25-basis point rate cut in September.