April 2022 – Bond Market Review
The Russian invasion into Ukraine and resulting Western sanctions on Russia continue to impact financial markets and the global economic outlook. As a result of the sanctions inflationary pressures have increased, particularly in energy, metals, and agricultural commodities like wheat.
4/8- Weekly Economic Highlights
Volatility across asset classes remains elevated as market participants continue to recalibrate expectations on the trajectory of monetary policy, the subsequent impact on asset valuations, and the overall impact to the domestic and global economy.
4/1- Weekly Economic Highlights
This week featured a robust set of economic data supportive of a more restrictive Federal Reserve monetary policy. The U.S. economy added 431,000 jobs in March, with upward revisions from the prior months totaling 95,000.
3/25- Weekly Economic Highlights
Financial markets were mixed this week as Treasury yields increased amid ongoing developments in the Russia-Ukraine war and its impact on the global economy. The U.S. Treasury yield curve flattened as 2-year Treasury yields increased to approximately 2.30% while the 10-year Treasury yield increased to around 2.55%.
3/18- Weekly Economic Highlights
The Consumer Price Index headlined the economic data releases this week and although U.S. consumer prices were in line with expectations, inflation hit a 40-year high. The Consumer Price Index (CPI) was up 7.9% year-over-year in February, versus a 7.5% year-over-year gain in January. Core CPI (CPI less food and energy) was up 6.4% year-over-year in February, versus up 6.0% in January.
March 2022 – Bond Market Review
Fed policymakers have recently pivoted toward a more hawkish stance as inflation indices continue to run hot and the labor market appears relatively tight, given their dual mandate of promoting maximum employment and stable prices.
3/11- Weekly Economic Highlights
The Consumer Price Index headlined the economic data releases this week and although U.S. consumer prices were in line with expectations, inflation hit a 40-year high. The Consumer Price Index (CPI) was up 7.9% year-over-year in February, versus a 7.5% year-over-year gain in January. Core CPI (CPI less food and energy) was up 6.4% year-over-year in February, versus up 6.0% in January.
3/4- Weekly Economic Highlights
Geopolitical risk and the escalating Russia invasion of Ukraine continues to heavily influence market pricing. Financial conditions are beginning to tighten with investment grade credit spreads moving wider, elevated new issue concession in the primary market, and decreasing liquidity with wider bid/ask spreads across the fixed income universe.
2/25- Weekly Economic Highlights
The reality and human tragedy of the Russian invasion into Ukraine increased volatility in financial market this week. The onset of the invasion rattled financial markets on Thursday. Global stock markets were soft in the days leading up to the invasion but rallied late Thursday and into Friday as the initial shock receded. The yield on the 10-year US Treasury note fell to 1.84% intra- day on Thursday but was yielding 1.99% this morning , up 0.06% as flight to quality assets faded in financial markets.
2/18- Weekly Economic Highlights
U.S. consumer prices climbed more than expected in January as inflation hit highs not seen since 1982. The Consumer Price Index (CPI) was up 7.5% year-over-year in January, versus up a 7.0% year-over-year gain in December. Core CPI (CPI less food and energy) was up 6.0% year-over-year in January, versus up 5.5% in December.