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Income Report Card | July 3, 2017

Posted on July 3, 2017

Our Observations: The 10-year Treasury yield rose to 2.27%, pushing it to the higher end of the recent trading range. Pundits seemed to have shifted their concerns from rising rates to inflation since the Federal Reserve indicated that lower inflation is not a concern. We think it will be important to watch how policymakers respond […]

Income Report Card | June 26, 2017

Posted on June 26, 2017

Our Observations: The 10-year treasury yield ended the week at 2.15%, a 1 basis point change over the week. We see the increase in short-term rates standing out, as the scorecard’s cash proxy has nearly doubled its yield in the last year while all other yield options have experienced lower yields. At some point, we […]

Momentum | June 13, 2017

Posted on June 13, 2017

Our Observations: Stocks have taken a brief pause from their recent push this week while bonds took the lead. Short-term trends have favored bonds as the 10-year Treasury has gone from 2.42% to 2.21% in the past month. Foreign bonds have done even better as the euro has appreciated relative to the dollar. However, we […]

Income Report Card | June 5, 2017

Posted on June 5, 2017

Our Observations: The 10-year Treasury ended the week at 2.21%, within the new lower range of 2.20% and 2.30%. The drop in global rates is helping push sovereign bonds higher and keeping them competitive in terms of performance. We think this is an important trend worth watching as the current rate of sovereign bonds doesn’t […]

Income Report Card | May 30, 2017

Posted on May 30, 2017

The 10-year Treasury finished the week at 2.25%, inside what appears to be a new and lower trading range of 2.20% and 2.30%. The report card is again showing a decline in rating for U.S. corporate high yield bonds, and high yield municipal bonds are moving into their top spot. Given the low credit spreads […]

Income Report Card | May 22, 2017

Posted on May 22, 2017

Our Observations: Rates fell sharply last week with the 10-year Treasury closing at 2.23% close to the 2017 low. This has lowered the overall range between 2.40% and 2.20%. Despite the rally in Treasurys and other safe bonds, the report card doesn’t indicate any type of fundamental shift in expectations. We think it may be […]

Income Report Card | May 15, 2017

Posted on May 15, 2017

Our Observations: The 10-year Treasury ended the week at 2.33%, inside the 30 basis points range that has held for much of the year. It appears that the appetite for risky assets, i.e. stocks and credit, has returned after the minor sell-off in April. We also remain in a historically low level of market volatility. […]

Income Report Card | May 8, 2017

Posted on May 8, 2017

Our Observations: The 10-year Treasury ended the week at 2.36%, inside the range that has held for much of 2017 after a volatile few weeks for bonds. The report card is showing some rank changes in many of the credit sectors. We think the volatility in rates is indicative of increasing risks of all types of […]