The Markets “We Like Bonds”
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Dec 19, 2025 Lindsay Rosner, Head of Multi-Sector Investing at Goldman Sachs Asset Management, shares her insights on the fixed income landscape as we approach 2026. She discusses the stability of the labor market despite noise in the jobs report and explains why bond yields remain unchanged. Lindsay anticipates minimal rate cuts in 2026 and highlights the appeal of bonds with an aggregate yield-to-worst of ~4.33%. She also explores potential economic scenarios shaped by AI and advises on maintaining an intermediate duration strategy for optimal returns.
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Labor Data Is Noisy, Not Catastrophic
- The November employment data is noisy because of the government shutdown and deferred resignations.
- Lindsay Rosner says the labor market is softer but not collapsing, so the Fed shouldn't panic.
Treat A January Cut As Unlikely
- Market pricing leaves January cuts unlikely and forward odds were unchanged after the jobs report.
- Lindsay advises treating January as off the table while expecting about two cuts across the next year.
Front-End Cuts Steepen The Curve
- The curve steepened because central banks control the front end while longer yields stayed higher.
- Rosner prefers intermediate duration where term premia are rising globally and the 10-year may move higher.