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PGIM Core Bond Fund Q4 2025 Commentary

Seeking Alpha
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⚡ Quantum Brief
PGIM’s Core Bond Fund outperformed the Bloomberg U.S. Aggregate Bond Index in Q4 2025, driven by strong fixed-income returns despite minimal duration impact from declining front-end Treasury yields. Management remains guardedly optimistic about the fourth year of the "yield is destiny" bond bull market, citing sustained attractive yields and solid return potential in early 2026. Economic conditions and yield environments are expected to stay favorable, supported by robust S&P 500 earnings growth and stable macroeconomic trends. The fund’s performance benefited from strategic positioning as short-term Treasury yields fell, though duration adjustments played a limited role in gains. PGIM highlights the current "sweet spot" in fixed income, emphasizing that slow-but-steady bull market conditions should continue delivering reliable returns.
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PGIM Investments41 FollowersFollow5ShareSavePlay(25min)CommentsSummaryPGIM management believes the slow-going bull market remains in the sweet spot and attractive yield levels should continue to accrue into solid returns.PGIM management remains guardedly optimistic on entry into what stands to be year four of the “yield is destiny” bond bull market.The PGIM Core Bond Fund outperformed its benchmark, the Bloomberg U.S.

Aggregate Bond Index, on a gross basis.PGIM Core Bond Fund duration positioning had a negligible impact on performance as front-end yields on the U.S. Treasury yields declined.PGIM management expects the economy and yields to remain favorable, with strong earnings growth from the S&P 500. Lemon_tm/iStock via Getty Images Market Review With 2026 underway, a few factors are readily apparent across the global fixed income markets: the slow-going bull market remains in the sweet spot; attractive yield levels should continue to accrue into solid returns over the This article was written byPGIM Investments41 FollowersFollowPGIM Investments, a subsidiary of PFI, is an investment adviser and the investment manager to all PGIM US open-end investment companies and manager or administrator to closed-end investment companies. Note: This account is not managed or monitored by PGIM Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use PGIM Investments' official channels.

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