“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 […]
“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 […]
“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 […]
“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 […]
“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 […]
“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 […]
“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 […]
“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 […]
“Man Smart, Woman Smarter” – Harry Belafonte Key Takeaways While equity markets hit new highs, US Treasury bond yields changed very little in November. Spreads on corporate and municipal bonds generally tightened during the month. With the 2020 election behind us investors will continue their focus on the speed of economic recovery from the pandemic. […]
When investors purchase bonds they encounter terminologies like premium, discount, or par. Knowing what these words mean can help investors make better decisions about which bonds to purchase and understand how the bonds should behave after they have been added to their portfolio. Generally in life, the term discount signifies a good value. If you […]