Bond Traders’ Big Bet for 2026 Vindicated by Soft US Job Growth Michael MacKenzie and Ye Xie Mon, January 12, 2026 at 1:30 AM GMT+5:30 6 min read Photographer: Jamie Kelter Davis/Bloomberg (Bloomberg) -- Bond investors’ overarching wager on the path of the Federal Reserve and the Treasuries market in 2026 looks like it has room to run. Most Read from Bloomberg New Design Plans Revealed for White House Ballroom In Birmingham, a Stadium Plan Shows UK Football’s Flashy Side New LA Home Designs, Reimagined By Fire Summit Properties Wins Auction for Bankrupt NYC Apartments Slowing the Spread of Urban Fires Starts Right Outside the Home A much-anticipated employment report on Friday showed job growth was below forecasts last month, leaving intact expectations for additional Fed interest-rate cuts to support the economy. The result confirmed confidence in bets that short-maturity Treasuries, which are the most sensitive to the central bank’s policy, will outpace their longer-term counterparts this year, widening the yield gap between those maturities.
