July 18, 2014 Market Update

The intensifying geopolitical backdrop of Ukraine/ Russia, Israel/ Gaza, and Iraq/ ISIS continued to influence market activity and investment flows last week. As a result, intermediate and longer-dated Treasury rates were able to revisit their low yields of the year, last touched in May. However, the one thematic constant that continued unabated last week was … Read more

July 11, 2014 Market Update

Geopolitical headlines, coupled with renewed stress in European markets, led to a strong rally in US Treasuries last week. Further supporting the decline in interest rates was the perceived dovish overtone to the minutes of the June Federal Open Market Committee meeting. The yield curve flattened yet again, as intermediate and longer dated maturities registered … Read more

June 27, 2014 Market Update

Treasury yields fell across the maturity spectrum last week, with longer dated maturities recording the largest price gains relative to shorter dated bonds and notes. With geopolitical concerns continuing to weigh heavily on investors’ minds, interest rates were propelled lower on the surprising revision to the 1st quarter GDP and the resulting downward revisions to … Read more

June 20, 2014 Market Update

With geopolitical risks abound, financial markets were resilient yet again last week, thanks to the mostly dovish tone struck by the Open Market Committee of the Federal Reserve and its Chair, Janet Yellen. Despite recent economic indicators registering a pickup in growth and inflation, namely CPI, the FOMC reiterated its “lower for longer” theme in … Read more

June 13, 2014 Market Update

The grind toward higher Treasury yields—and June’s bearish momentum in interest rates—persisted through most of last week, only to reverse on Thursday with an escalation in geopolitical concerns, especially Iraq. After reaching a high of 2.70%, 10 year Treasury notes recovered on the selloff in risk assets and closed the week up only 1 basis … Read more

June 6, 2014 Market Update

Treasury yields rose sharply last week, with intermediate and long dated bonds registering the sharpest price declines, as US equities again reached new highs. Friday’s eagerly anticipated May employment report came in line with market expectations, continuing to signal gradual improvement in the labor market. With +217,000 jobs created last month, May marked the first … Read more

May 30, 2014 Market Update

Treasury yields continued to decline to new lows over the last two weeks, with intermediate and long dated maturities reaching levels last seen in June 2013. With the ten year US Treasury note declining nearly twenty basis to 2.48%, all fixed income sectors produced strong monthly returns in May, adding further to impressive 2014 returns. … Read more

May 16, 2014 Market Update

Continuing to defy economic fundamentals, and strong inflation data especially, bond markets extended their unabated 2014 rally last week. Intermediate and long-dated Treasuries were again the top performers, further flattening the yield curve. At +298 basis points, the interest rate differential between two year and thirty year bonds now rests at its narrowest spread since … Read more

May 9, 2014 Market Update

With little escalation on the geopolitical front and no compelling data to shift broader economic expectations, interest rate markets were confined to narrow yield ranges in a rather tedious week. With intermediate and long dated Treasury rates failing to extend price gains from the prior week’s payrolls report, we suspect the path of least resistance … Read more

May 2, 2014 Market Update

US Treasury yields declined across the entire maturity spectrum last week, as renewed geopolitical risk more than outweighed a strong employment report. With inflation remaining well below the Fed’s target rate of 2%, long dated Treasury yields continued to decline at a faster rate than shorter dated yields, further flattening the yield curve. At 295 basis points, … Read more