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Bond Investors Anticipate Fed Rate Cuts Amid Weak Job Growth

1/12/2026

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Summary

Story summary

Bond investors focus on Federal Reserve rate decisions after a January 2026 employment report showing weaker job growth.
The weaker job growth reinforced expectations for further rate cuts.
The gap between 2-year and 10-year Treasuries widened to its largest difference in nine months.
Pramod Atluri of Capital Group predicts benefits from a steepener trade in the next 12–24 months, targeting short-maturity Treasuries.

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Story summary

Bond investors focus on Federal Reserve rate decisions after a January 2026 employment report showing weaker job growth.
The weaker job growth reinforced expectations for further rate cuts.
The gap between 2-year and 10-year Treasuries widened to its largest difference in nine months.
Pramod Atluri of Capital Group predicts benefits from a steepener trade in the next 12–24 months, targeting short-maturity Treasuries.