Fixed Income

Fixed Income Commentary – May 2022

April Showers…Bring May Flowers? Bond yields continue to realign to the new paradigm of higher inflation and shifting monetary policy.  While lower prices for existing bond holdings may be unpleasant, unrealized losses are temporary in nature and higher yields are a very attractive development for any investment activity from this point forward: yields are the […]

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Fixed Income Commentary – April 2022

Miserable March Following the “Forgettable February” theme, “Miserable March” was not a pretty month for bond returns, but the future income component on new bond investments will be more appealing as a result. Yields rose considerably during the month — by 90 basis points (bps) on the two-year Treasury, 50bps on the ten-year note, and […]

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Fixed Income Commentary – March 2022

Forgettable February Bond yields rose in February as market expectations of Fed rate hikes gathered steam, but the outbreak of hostilities at the end of the month limited the climb. Earlier in the month, several Fed officials on the more hawkish end of the spectrum expressed the view that a 50 basis point (0.50%, or […]

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Fixed Income Commentary – February 2022

Slippery Conditions Ahead Bond yields rose in January to start the year off in similar fashion to 2020. A year ago, the bond market was reacting to the imminent rollout of vaccines which seemed to offer hope for an end to the pandemic. This year, even as the pandemic continues to rage, the bond market […]

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Fixed Income Commentary – January 2022

Happy New Year! Bond yields rose modestly in December in a fitting end to the year: COVID is still a significant problem, but the economy is showing its resilience, growth and inflation remain firm, and rate hikes are now on the horizon for 2022. As a result of higher Treasury yields, the total return for […]

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Fixed Income Commentary – December 2021

Year-End Review Our format this month takes a slightly different approach. First, we provide some brief color on what transpired in the bond market last month. Next, we offer some comments on economic reports and what they portend for the future. Lastly, we present some brief commentary on each of the broad sectors of the […]

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Fixed Income Commentary – November 2021

“Short Supply” – Tracy Chapman Key Takeaways Most of the action in October for Treasury yields was in the two to ten-year part of the curve, where yields rose from 6 to 25 basis points. As of now, two rate hikes next year are reflected in market yields. Third quarter GDP came in at just […]

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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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