Fixed-Income Monitor: January 2026

Columbia Threadneedle’s Fixed-Income Monitor, led by Samantha Parsons and the firm’s fixed-income team, consolidates key market signals to guide sector positioning in January 2026.

• The Fed cut 25bp in December, taking rates to 3.50%–3.75%, but signalled caution as inflation risks persist.

• US labour data softened: unemployment rose to 4.6% (four-year high) with just 64k payroll gains, supporting a “cooling” narrative.

• Credit delivered solid gains and spreads tightened; investment-grade outperformed high yield, reinforcing the case for selective risk-taking.

Read the full monitor for the sector dashboard, valuation context and relative-value signals across core bond markets.