Bonds are having their best year since 2020. But don't expect the same returns next year.
MarketWatch·2025-12-18 19:36

Core Viewpoint - The uncertain outlook for inflation and interest rates is expected to drive yields higher in the coming year, which will negatively impact bond prices [1] Group 1 - The potential increase in yields is attributed to the unpredictable nature of inflation and interest rate trends [1] - Higher yields could lead to a decrease in demand for bonds, as investors may seek better returns elsewhere [1] - The bond market may face significant challenges as these economic factors evolve [1]