Fixed Income Perspective
Fixed Income Perspective provides key fixed-income insights into current rates, credit trends, and a “Bottom Line” section summarizing key takeaways.
Municipal Bonds: Limited Policy Support Creating Opportunity
Since their severe liquidity disruption in March, high-grade muni valuations have clawed their way back toward pre-pandemic levels.
Grading on a Steepening Curve
Intermediate and long US yields have risen significantly in recent weeks, primarily in response to monetary policy and better-than-expected jobs numbers, but remain well below pre-COVID highs.
The Fed’s Fixed Income Frenzy
Last week, the Federal Reserve (Fed) took additional steps to provide up to $2.3 trillion in loans to support the domestic economy through the economic shutdown and beyond.
The Fed Goes Open-Ended
The US Federal Reserve (Fed) announced new, extensive measures to support the US economy.
Municipal Bonds Not Immune to Pandemic
Over the past two weeks, tax-exempt Municipal bonds (Munis) have endured significant price weakness, with yields spiking more than 200 basis points (2%) across many parts of the AAA Muni curve.
Global Yields Continue to Tumble
On March 3rd, the 10-year US Treasury yield fell below the 1.0% threshold for the first time in history, touching 0.9% briefly before settling closer to 1.0%.