Fixed Income Perspective
Fixed Income Perspective provides key fixed-income insights into current rates, credit trends, and a “Bottom Line” section summarizing key takeaways.
Since their severe liquidity disruption in March, high-grade muni valuations have clawed their way back toward pre-pandemic levels.
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.
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 US Federal Reserve (Fed) announced new, extensive measures to support the US economy.
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.
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%.