US bonds rallied as investors assessed whether higher risk would increase demand for Treasuries. The 10-year Treasury yield fell two basis points to 4.17%. Germany’s 10-year yield dropped two basis points to 2.88%, and Britain’s fell three basis points to 4.51%.
Equity volatility ticked up, yet it stayed near a five-year low. Some portfolio managers favored targeted hedges over broad risk cuts. The price of volatility remained a key variable for tactical positioning.
Crypto prices rose alongside risk assets. 2.6% to $93,575.01, and Ether advanced 1.2% to $3,179.65. Traders tracked whether stronger equities and lower yields would support further demand.
A new US report showed manufacturing activity contracted in December by the most since 2024. The data added pressure on the outlook for factories and inventories. Investors now turn to a heavy calendar that could reset rate expectations.
The US Bureau of Labor Statistics is due to publish the job openings, quits, and layoffs for the month of November. Then, the crucial data for the labor market and wages is the jobs report for the month of December, which is to be released next Friday. Subsequent data will come in the form of the housing starts data from the government. Additionally, the University of Michigan is to publish the January Consumer Sentiment Index.
Corporate news also influenced trading. Coinbase shares rose after upgraded the stock, citing growth in subscription and services revenue. Precious metals miners also climbed as gold rose, supporting firms across the sector.
Investors also tracked capital markets headlines after uneven IPO performance in 2025. Analysts reported a weighted average gain of 13.9% for new listings, versus 16% for the S&P 500. Separately, Saks Global Enterprises sought a loan of up to $1 billion to support near-term liquidity.
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