Investors will continue to get solid income in bonds in 2026, but should not take too much risk, according to Wells Fargo Investment Institute. The firm anticipates interest rates and credit spreads will remain rangebound next year, with the 10-year Treasury yield ending 2026 between 4% and 4.5%. It also believes the Fed, which cut interest rates by a quarter percentage point this week, will likely further reduce rates towards a neutral policy rate. Therefore, the yield curve should steepen as shorter-term rates move lower and yields in intermediate- and long-term assets rise, Wells Fargo said in its 2026 outlook. "Yield should remain the central goal for investors in 2026, and credit quality the key metric to watch, as earnings durability and continued capital-market access likely drive s

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