By: Fiona Cincotta, Senior Market Analyst
As of January 2026, US Treasuries are displaying a degree of calm that appears at odds with the political backdrop. One year into Donald Trump’s second term, investors are navigating record fiscal deficits, renewed trade tensions, and concerns around institutional credibility. Yet despite brief volatility tied to global bond market moves, U.S. Treasury yields remain contained. These insights are drawn directly from a primary-source interview reflecting current market positioning rather than aggregated commentary.
Fiona Cincotta, StoneX Senior Market Analyst, has spent years analysing global bond markets across multiple political and rate cycles. Her focus on cross-asset relationships and investor behaviour gives her a distinctive perspective on why U.S. sovereign debt continues to attract demand despite elevated policy risk.
U.S. Treasuries have absorbed political shocks without suffering sustained upward pressure on yields. Fiona Cincotta notes that "despite the recent noise, the damage has been limited", highlighting that ten-year yields are only marginally higher than earlier in the year. This resilience suggests investors are distinguishing between headline risk and underlying credit credibility. Consequently, Treasuries continue to function as a stabilising asset even during policy-driven volatility.
US Treasuries continue to benefit from unfavourable comparisons elsewhere in the developed world. Cincotta points out that "yields have fallen more in the U.S. than in any other major economy over the past year", reinforcing their relative appeal. Structural challenges in Japan, France, and the UK have made alternative sovereign markets less compelling. As a result, global investors remain willing to allocate to U.S. bonds despite unresolved fiscal concerns.
From detailed guides on how to trade major assets to quarterly market outlooks and special reports, we offer FREE access to the articles you need to successfully implement "global macro" style trading!
Sign Up See our financial videos hub
--- Written by Frédéric Guétin, StoneX TV Producer
--- Expert: Fiona Cincotta, StoneX Senior Market Analyst
The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer. This content is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.
© 2026 StoneX Group Inc. all rights reserved.
Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
The Federal Reserve and the Bank of England held rates on the same day and drew opposite reactions from bond markets. The split shows how communication and fiscal context, rather than the rate decision alone, now shape a central bank's standing.
Australian bond markets have rapidly repriced the outlook for interest rates after softer inflation data weakened the case for further Reserve Bank of Australia tightening. As inflation continues to moderate faster than expected, investors are increasingly questioning whether the current rate cycle has already reached its peak.
Rising real yields are signalling a broader repricing of risk that extends beyond Federal Reserve policy. Greater Treasury supply, fiscal concerns and higher term premiums could reshape valuations across global asset markets.
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve, our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
