Bond yields are currently undergoing a significant structural shift as markets transition into a new phase of the economic cycle. Short-term rates are trending lower, with 2-year Treasury yields recently touching 3.40%, their lowest level since 2022. This movement is largely driven by expectations of final easing measures and ample system liquidity. In contrast, long-term rates are moving in the opposite direction. The 10-year Treasury yield has recently climbed back toward 4.04%, while the 30-year yield remains elevated due to rising term premia. This divergence has pushed the yield spread between 2-year and 10-year notes to approximately 70 basis points, the widest gap in four years. This steepening of the yield curve signals that the era of aggressive rate cuts is likely nearing its conclusion. Central banks are shifting to a "neutral" stance, with the Federal Reserve expected to target a terminal rate between 3.0% and 3.5%. The market is now pricing in a "Goldilocks" scenario of resilient growth and stabilizing inflation, which reduces the immediate need for further monetary stimulus. Institutional investors are responding to this environment by shifting their strategies. Many are locking in long-term funding now to hedge against future volatility and potential rate increases. This institutional demand is focused on intermediate-term durations, typically between 5 and 7 years, to balance the benefits of current yields against the risks of rising long-term rates. Fiscal factors are also playing a primary role in the upward pressure on long-term yields. Massive government issuance and the financing costs of federal deficits are keeping the "long end" of the curve high. Investors are demanding a higher premium for holding long-dated debt, reflecting concerns over sticky inflation and the long-term supply of government bonds. The current market landscape is characterized by high-quality credit resilience. While corporate spreads remain historically tight, the divergence in yields suggests that liquidity is concentrated in shorter maturities while the broader market prepares for a "higher for longer" reality in the years ahead. This shift marks a definitive move away from the emergency policy settings of previous years toward a more traditional, upward-sloping yield environment.