Interest Rates / Bonds Forecast — as of 2025-12-18

Long Term (6 months or longer): BEARISH (for bonds / higher-rate bias)
The long-cycle pressure remains toward structurally higher rates, keeping long-duration bonds vulnerable despite intermittent relief rallies.

Intermediate Term (6 months or less): NEUTRAL to BullISH
Rates are capped near-term by policy expectations, but bond rallies will breakout for multiple months.

Short Term (one week to several weeks): NEUTRAL
Price action is range-bound as markets oscillate between rate-cut hopes and credibility concerns, favoring tactical trades over conviction.

Very Short Term / Day-to-Day: NEUTRAL
Day-to-day movement is data- and headline-driven, with no consistent directional edge outside event windows.

Bonds: The I-T cycle is due but nothing long term

More From Capital