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January 2026 Bond Market Review

December economic data signaled moderating inflation alongside a continued rebalancing in labor market conditions, with price pressures still running modestly

December 2025 – Bond Market Review

The near-term economic outlook continues to be distorted by the data delays from the government shutdown. Recently released government data—reflecting

Get Ready for Rising Rates

The possibility of sustained economic growth, improvements in consumer confidence and job creation, as well as an increased willingness by the Fed to entertain a tighter monetary policy are factors signaling to investors that the bond markets may be entering a period of rising interest rates. This represents a secular paradigm shift for short-duration fixed- income investors that have seen rates fall and stay at record lows for nearly a decade. As with any turning point, this potential change will create a number of opportunities to enhance earnings. Likewise, this rise in interest rates may bring risks that short-duration investors must be prepared to navigate in order to ensure the safety, liquidity, and return of their investments.

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