U.S. Treasury yields rose after hawkish comments from U.S. Federal Reserve officials.

Under the microscope, not under the bus. This spring’s banking sector turmoil has investors casting a wary eye on commercial mortgage-backed securities (CMBS).

U.S. Treasury yields rose despite improved U.S. inflation data, as expectations for more persistent inflation picked up.

As the June 1 “X date” approaches, one thing investors can be certain of is that more uncertainty lies ahead. We can expect further volatility across equity and fixed income markets until we have greater clarity on the outcome — and probable impacts — of the U.S. debt ceiling negotiations. 

U.S. Treasury yields rose after the U.S. Federal Reserve hiked interest rates for what should be the final time of this tightening cycle.

In the first quarter, our Global Investment Committee upgraded its outlook on emerging markets equity and debt, a view we still hold. Last week’s likely pause in Fed rate hikes could be a catalyst for further weakening of the U.S. dollar, which has already declined about 6% from its October 2022 high relative to EM currencies.

Tony Rodriguez summarizes the outcome of the latest U.S. Federal Reserve meeting.

U.S. Treasury yields fell amid mixed U.S. economic data ahead of this week’s U.S. Federal Reserve meeting.

This anticipated environment of interest rate stability could (we hope and expect) create attractive opportunities in the taxable fixed income arena. In particular, we favor spread sectors that offer compelling yields that should avoid excessive spread widening — even during the mild recession we anticipate will occur later in 2023.

U.S. Treasury yields rose again on stronger economic data in the U.S. In addition, inflation in the UK also surprised substantially to the upside, pushing global developed market bond yields higher.

Across the municipal bond landscape, we prefer pairing credit risk with duration risk.