TROW · 10-Q · 2026Q3 · Full report

Interest Rate Environment

PRICE T ROWE GROUP INC · 2026-10-29 · Importance 10 · Surprise 6

Global fixed-income markets generated negative returns in the third quarter of 2026 as government-bond yields rose amid persistent inflation, elevated energy costs, geopolitical uncertainty, and concerns about government debt supply. The Federal Reserve held its federal-funds target range at 3.50%–3.75% in July, with three policymakers dissenting in favor of an immediate increase, then unanimously raised it to 3.75%–4.00% in September—the first increase in more than three years. Updated projections indicated that most policymakers expected another increase before year-end, and rising Treasury yields pressured U.S. fixed-income returns.

Key facts

• Adjusted non-operating income declined in the three- and nine-month 2026 periods primarily because losses on fixed-income holdings from rising interest rates more than offset higher dividends on cash equivalents and other fixed-income holdings. source