September 19, 2014 Market Update

In a week defined by increased rate volatility, Treasury yields ended mixed, as the yield curve continued to flatten. Registering its first monthly decline in over a year, the Consumer Price Index (CPI) continued to support a benign inflationary environment, further supporting long-dated instruments. With global inflation subdued, central banks around the world remain more … Read more

September 12, 2014 Market Update

After a strong summer rally, the first two weeks of September have not been kind to US financial markets, with both stock and bond markets generating negative returns. In the month to date, ten year Treasury yields have risen twenty five basis points to 2.60%, the highest such level since the first week of July. … Read more

September 5, 2014 Market Update

Led by Friday’s disappointing August payrolls report, US interest rates were able to extend their impressive summer rally last week. Though 142,000 jobs were created last month, the number missed market expectations by almost 90,000, with prior months’ releases actually recording fewer workers than initially reported. Further aiding fixed income markets were the ongoing geopolitical … Read more

August 15, 2014 Market Update

With geopolitical events continuing to exert undue influence on the global economy, several of last week’s economic releases—namely, retail sales and the producer price index (PPI)—provide insight into fundamental forces that ultimately determine growth and the direction of interest rates. The retail sales number for July was a disappointment, as the recent gains in employment … Read more

August 8, 2014 Market Update

In a week devoid of meaningful economic data, financial markets were once again led by intensifying geopolitical events. With stock indices across the globe recording losses of 1%-3% on the week, US ten year yields declined to a low of 2.35% on Friday—a new low for 2014 and the lowest such point since June 2013. … Read more

August 1, 2014 Market Update

After months of record low volatility and little directional bias in price, fixed income markets were finally awoken from their summer doldrums, driven by a string of robust economic data. Not to be outdone, equity markets sold off sharply on the data, with the DJIA recording a 317 point drop on Thursday, its largest such … Read more

July 25, 2014 Market Update

Increasing geopolitical tensions, mixed economic data, low volatility, and little directional bias in interest rates; sound familiar? Last week produced more of the same in fixed income, as prices across the entire maturity  spectrum remain in a well-defined (and very narrow) trading range. With a yield of 2.48%, the ten year US Treasury note has … Read more

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