What a Steeping Yield Curve Means for Bond Markets

Janet Rilling expects the yield curve to continue to steepen into 2026 as the Fed holds down the front end and the market “controls the rest.” She reviews the bond market’s moves this year and how fixed income had “quite a good year.” However, she urges caution around some corporate credit segments and breaks down some of the AI capex. She’s finding opportunity in “global government bonds” creating a “higher yield break-even spread.”

Market On Close

09 Dec 2025

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