The Fed held rates at 3.75%–4.00%, in a 10-2 vote, with Governors Cook and Hammack dissenting in favour of a hike. Markets now fully price in two further hikes in the first half of 2027. Treasuries sold off on the long end, as the 10-year yield rose to 5.02%, while the 2-year edged to 4.70%. In Europe, sovereign bonds were broadly stable and spreads contracted. Elsewhere, the BoC raised rates 25bp to 2.50%, while the RBNZ unexpectedly held rates, leading to sharp fall in the NZ dollar.