Bond investors likely to see a steepening curve in 2026

InvestorDaily

A clearer policy outlook in 2026 is pushing fixed-income investors back to fundamentals, with expectations of lower rates, a steeper yield curve and growing opportunities beyond the US, particularly in emerging markets. In 2026, we can really hit the ground running, as we now know the endgame on taxes and on some of the administration’s policies going forward. So, in fixed income, we are going to stick to our knitting.

We are going to continue to review the fundamentals of companies before we even get to the valuation part. But key areas of interest for fixed income investors will continue to be the Federal Reserve and their policies. We think under the current administration, it is far more likely that rates continue to go down, but the direction is known while the pace and timing is not.

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