Government bond yield curve is expected to steepen in 2026.

In a report, Edmond de Rothschild stated that due to tight public finances and huge financing needs, it is expected that government bond yields will remain high in 2026, and the yield curve may steepen further, meaning the difference between long and short-term yields will widen. The institution noted that in comparison with the budget trajectories of the United States and Europe, the expected final rate cuts by central banks of various countries will play a secondary role. The institution stated: "In this context, the attractiveness of government bonds in a balanced investment portfolio will decline, especially as term premiums rise and their defensive nature weakens."