Fixed Income
- It was a tough month for fixed income investors during September. Interest rates spiked amid ongoing concerns about the government debt and sticky inflation, while economic growth was revised higher for Q2 2026. Core bonds fell during the period as a result.
- Spreads moved wider in September and high yield bonds declined in the risk-off market.
- Long duration bonds, which are more sensitive to interest rates, underperformed in the month as the yield curve shifted higher.