Fixed Income

Fixed Income Commentary – October 2021

“The Chain” – Fleetwood Mac Key Takeaways September saw yields move higher, out of the range they held for most of the third quarter, as Fed Chair Powell announced a tapering plan will come to fruition, likely after its November meeting. Supply chain disruptions and labor shortages are still headlines impacting the global economy, but […]

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Fixed Income Commentary – September 2021

“It’s Time” – Imagine Dragons Key Takeaways August saw a slight increase in bond yields across the curve and continued strengthening of the economy. Fed Powell confirmed the likelihood of “tapering” the Fed’s monthly asset purchases by year end in his comments from Jackson Hole. Powell also reiterated his expectation that inflation will prove transitory. […]

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Fixed Income Commentary – August 2021

“Up & Up” – Coldplay Key Takeaways Bond yields fell during the month on news suggesting some slowing in the recovery from the pandemic. Despite supply constraints that continue to affect production across numerous industries, both here and abroad, the 6.5% annualized real GDP figure was impressive, although slightly below expectations. The resurgence of Covid-19 […]

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Fixed Income Commentary – July 2021

“Higher Power” – Coldplay Key Takeaways The Fed’s rhetoric shifted in June as Powell’s post-FOMC comments suggested the removal of some of the stimulus measures that have been in place. There is a bit more concern around the trajectory of inflation. Several FOMC members now see a rate hike in 2022 as more likely, and […]

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Fixed Income Commentary – June 2021

“Slow & Steady” – Of Monsters & Men Key Takeaways Like last month, bond yields were relatively unchanged even as the economy continues to heat up, equity markets continue to rally, and inflation measures creep higher. Investors are left to debate whether the most recent signs of inflation will persist or are just transitory due […]

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Fixed Income Commentary – May 2021

“Here Comes the Sun” – The Beatles Key Takeaways Bond yields had a relatively quiet month despite the number of strong economic reports out during the month, declining 9 to 12 basis points, mostly on the back end of the curve. The Fed signaled they will stay the course with regards to their accommodative monetary […]

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Fixed Income Commentary – April 2021

“Anticipation” – Carly Simon Key Takeaways Intermediate and long-term bond yields continued their ascent in March.  Bond yields are rising for all the right reasons- economic activity is improving, fiscal policy is taking the baton from monetary policy, and financial conditions are supportive.  There is widespread anticipation for higher inflation in the short term, but […]

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Fixed Income Commentary – March 2021

“Getting Better” – The Beatles Key Takeaways Intermediate and long-term bond yields rose rather abruptly in February as investors digested the progress of the vaccine rollout and the return to a risk-on mindset. Fed Chair Powell’s comments to Congress during the month implied a “stay the course” message, emphasizing the need to support the economy […]

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Fixed Income Commentary – February 2021

“Honesty” – Billy Joel Key Takeaways Yields across the curve nudged higher in January, led by the 10-year Treasury yield piercing through the psychological 1% level for the first time since March 2020.  Considering the events of the past year related to the global pandemic, a print of 4% (annualized) on GDP gives us some […]

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Fixed Income Commentary – January 2021

“A Long December” – Counting Crows Key Takeaways Yields on the back end of the curve saw a bump up in rates as investors absorbed favorable vaccine news. Looking into 2021, bond investors will continue to watch the pace of economic recovery. While there is light at the end of the pandemic tunnel, there are […]

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