This week saw upgraded economic forecasts and long-end yields moved up in response despite the Fed re-committing to near-zero rates for the near-term future.
This week we saw relief from both Washington and from the CPI data; as the yield curve steepens, fixed income investors begin to bet on the next fed hike.
We saw the continuation of higher yields this week as inflation concerns, positive vaccine news, and a faster recovery remain at the forefront of fixed income markets.
This week shows an improved valuation of the asset class given the moves in underlying Treasury yields, making fixed income investments more attractive. Will this trend continue?
Fixed income markets are digesting the stimulus as both a positive for the economic recovery it brings and also the drawbacks of the massive debt being added to our deficit.
As most of the market attention is on the Reddit / GameStop saga, fixed income investors tuck in for more immediate harsh realities the economy is facing and spreads pullback.
Fixed income markets remained relatively calm this week as the new administration begins its 100-day plan, with investors still weighing how policies will affect their portfolios.