• 1st Source management highlighted a tougher 2026 fixed-income backdrop, citing higher Treasury yields, persistent inflation, geopolitical risks, and a resilient economy.
• 10-year Treasury yield rose to nearly 4.5% from about 4.15% at end-2025; 2-year moved to around 4.1% from the mid-3% range.
• Client portfolios still show average yields near 5%, with roughly 1% total returns so far this year versus mid-to-upper 7% last year.
• Kevin Warsh succeeded Jerome Powell as Fed chair; markets now price a potential 0.25-point rate increase over the next 15 months.
• Portfolio strategy keeps duration near five years; annualized returns near current yields over the next five years remain the base case.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. 1st Source Corporation published the original content used to generate this news brief on June 08, 2026, and is solely responsible for the information contained therein.