Weekly Market Commentary (For the Week Ending 1/9/26)

Rates Up Slightly This Week, NO Changes to Benefit Amounts!

Happy New Years and welcome back to the first edition of the SimpleReverse Weekly Market & Interest Rate Update for 2026! As many of you know, this is a weekly update sent out every Friday giving you a quick update on what is going on in the markets and where the 10YR CMT is headed for the upcoming week.

Market Update:

This week markets have been reacting to mixed economic data and shifting investor sentiment. Stocks in the U.S. have shown modest gains as traders digest recent labor figures that came in below expectations, reinforcing expectations that the Federal Reserve may hold interest rates steady in the near term rather than cut them immediately. Recent job growth was lower than forecast, although the unemployment rate ticked down, contributing to the idea that the labor market may be slowing but not weakening sharply — a key factor in the Fed’s rate deliberations.

At the same time, equity funds have seen outflows amid geopolitical and rate concerns, with investors rotating into bonds and money markets for safety. This reflects broader caution as market participants weigh future monetary policy moves against ongoing economic uncertainty.

Overall, market performance remains influenced by economic indicators (jobs, inflation), geopolitical developments, and rate expectations. With inflation data and labor reports continuing to guide expectations, the consensus leans toward rate stability in the near term, with potential Fed easing later in 2026 if economic conditions soften further.



10YR CMT Interest Rate Projection for Next Week:

The 10YR CMT currently sits at 4.16% for this week and has been relatively steady this week. We will see an increase of 1-2 bps in the Expected Rate next week! This will have NO IMPACT on the Expected Rate and will result in NO CHANGE to Benefit Amounts next week!

Based on the data from this week, we will see an INCREASE in the Expected Rate of 1-2 bps for next week. This INCREASE will have NO IMPACT on Benefit Amounts for next week. So, there will be NO DIFFERENCE IN BENEFIT AMOUNTS FOR YOUR CUSTOMERS FROM THIS WEEK TO NEXT WEEK!  As usual, new rates for next week will take effect on Tuesday, 1/13/26! We are providing this data to you so that YOU can continue to make the decisions that best suit your business based on the information you have!

If you have questions about this, please let me know! Thanks for the partnership and Good Selling!!!