When data is weak, traders expect lower future policy rates, so they buy bonds. Because bond prices and yields move inversely, that buying pushes yields DOWN. The short end (like the 2Y at 4.25%) is most sensitive to Fed expectations and moved most; longer bonds move too but their prices swing more per yield change because of higher duration.

A steep curve means long-term yields are well above short-term ones. Weak data tends to pull the short end (2Y) down faster than the long end (30Y) because it is tied to expected Fed cuts, which 'bull steepens' the curve. Beginners watch the curve shape as a signal of growth and policy expectations.

A credit spread is the extra yield over safe government bonds that compensates for default risk. Tight spreads (like 78bp) signal calm and confidence; if growth fears deepened, spreads would WIDEN, hurting corporate bond prices even if Treasury yields fell. So far the mood is 'soft data, but no panic.'

When a central bank buys fewer bonds, a big price-insensitive buyer shrinks, so private buyers must absorb more supply — typically pushing JGB yields UP and prices down. Higher Japanese yields can also unwind the 'carry trade' (borrowing cheap yen to buy higher-yielding assets abroad), which is why JGB policy ripples into global markets.

Government bond markets move together: when US Treasuries rally on weak data, UK gilt yields often drift DOWN too (and gilt prices up), because global investors reprice growth and rate expectations everywhere at once. A beginner takeaway — gilts rarely trade in isolation from the big US and euro-area moves.

Higher oil prices raise headline inflation, and inflation is a bond's enemy: it erodes the fixed coupons investors receive, so they demand higher yields, pushing gilt prices DOWN. Traders weigh this against soft growth data — if oil fears win, yields rise; if the growth slowdown wins, yields fall.