Debt Market Outlook for 2026 Fed Policy & Rates: Expect 2–3 rate cuts, guiding the federal funds rate to ~3.0–3.5%. 10-year Treasury yields projected at 3.75%–4.25%. Opportunities: Investment-grade corporates and agency MBS favored for yield stability. High-yield credit offers selective upside if spreads tighten. Strategy: Maintain intermediate duration, prioritize quality,...