Market Isn't Positioned For Lower Bond Yields, But Trump's $2,000 Checks Could Change The 2026 Trade
Bullish
66.3
The bond market looks deeply unloved heading into 2026, but Bank of America's chief investment strategist Michael Hartnett said that neglect could fuel a powerful rally ahead, unless Washington rewrites the script with extravagant fiscal stimulus.
Speaking this week on a podcast, Hartnett said the case for lower yields rests on three pillars — positioning, macro deterioration, and policy — with an important political wildcard that could upend the thesis.
“We still think that the market is not positioned for lower bond yields,” Hartnett said.
Market Still Not Set For Lower Bond Yields, Hartnett Says
Despite persistent debate about slowing growth, investors remain heavily skewed toward risk assets.
Hartnett said Bank of America's private clients hold roughly $4 trillion across portfolios,
Speaking this week on a podcast, Hartnett said the case for lower yields rests on three pillars — positioning, macro deterioration, and policy — with an important political wildcard that could upend the thesis.
“We still think that the market is not positioned for lower bond yields,” Hartnett said.
Market Still Not Set For Lower Bond Yields, Hartnett Says
Despite persistent debate about slowing growth, investors remain heavily skewed toward risk assets.
Hartnett said Bank of America's private clients hold roughly $4 trillion across portfolios,
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This analysis was generated using Pulse AI, Glideslope's proprietary AI engine designed to interpret market sentiment and economic signals. Results are for informational purposes only and do not constitute financial advice.
