Bond prices and yields move in opposite directions, so 'bonds rallied' means yields fell. Weaker jobs data lowers the expected path of Fed policy rates, which pulls yields down — most at the short end (the 2Y), because those maturities track expected rate decisions most closely. Longer bonds (10Y/30Y) have more duration, so a given yield fall produces a bigger price gain there, which is why traders often add duration when they think rate cuts are coming.

An upward-sloping curve means longer loans to the government pay more than short ones — normal in a healthy expansion. When soft data raises expectations of future rate cuts, the short end usually falls faster than the long end, 'steepening' the curve (a bull steepener). Beginners watch the curve because a flat or inverted curve (short yields above long) has historically signaled recession worries.

A credit spread is the extra yield a company pays over a comparable Treasury to compensate for default risk. Tight (small) spreads mean investors are relaxed about defaults and demand little extra reward — typical when growth fears are mild and sentiment is risk-on. If the labor-market slowdown were seen as recessionary, spreads would usually widen (bond prices of riskier issuers falling); the fact they stayed tight suggests markets read the jobs miss as rate-friendly, not crisis-signaling.

When a central bank buys fewer bonds, it removes a large, price-insensitive buyer, so private investors must absorb more supply — that typically pushes JGB prices down and yields up. Higher JGB yields matter globally because they can make Japanese investors bring money home rather than buy foreign bonds, and they raise the cost of the yen 'carry trade' (borrowing cheaply in yen to buy higher-yielding assets abroad). Beginners should watch JGB yields overnight as a barometer for global bond and currency moves.

Bond investors care intensely about inflation expectations because inflation erodes the fixed coupons a bond pays. When expected inflation drifts lower, investors accept lower yields — supportive for bond prices — and it strengthens the case for the Fed to hold rather than hike. Well-anchored longer-term expectations (the steady 3-year and 5-year here) are what central banks watch most, since they signal credibility.

UK gilts don't trade in isolation: when U.S. Treasuries rally (yields fall), gilt yields often follow because global investors compare sovereign bonds against each other. Lower yields mean higher gilt prices, and longer-dated gilts — with more duration — gain the most. For a beginner, the key link is that softer growth/inflation signals abroad tend to ease expectations for the Bank of England's rate path, and gilt yields adjust accordingly; tomorrow's read-across from the overnight moves is worth watching.