Q3 2026 Short Duration Commentary

Higher interest rates, persistent inflation pressures and a resilient economy shaped fixed income markets during the third quarter. As expectations shifted toward rates remaining elevated for longer, bond yields moved higher, creating attractive income opportunities while reinforcing the need for disciplined security selection.

Key takeaways:

• Interest rate expectations continued to drive fixed income market performance.
• Economic resilience supported credit markets despite increased volatility.
• Elevated yields strengthened the case for a quality-focused, selective approach.