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
It’s summer. Financial markets are supposed to be in sleep mode till Labor Day. BUT, that has hardly been the case as volatility and uncertainty remains elevated in all asset classes as we approach a possible inflection point in the Federal Reserve’s Quantitative Easing Program (QE).
EJ Reinoso provides commentary to Bloomberg News following S&P’s downgrade of U.S. credit, in this morning’s article “Muni Market Prepares for Loss of AAA Ratings as S&P Downgrades U.S. Credit.”