Federated Hermes fixed-income strategist Karen Manna said the Fed’s 25bp hike
last week reinforces the reality for bond investors through most of 2026: rates
are materially higher and the timing/path of any decline remains uncertain.
Multi-year high US Treasury yields reflect resilient growth, lingering inflation
concerns, large fiscal deficits and markets’ reassessment of where ‘normal’
rates should be. She added that while higher yields have caused near-term price
pressure, they improve long-term fixed-income investment opportunities, and that
distinction is critical.
