Safe Haven Bid Dominates Rate Moves

Last Week: Interest rates were mixed while equities edged lower on the week. Treasury yields staged their largest one week decline in more than a year on the back of renewed geopolitical jitters, lower energy prices, economic turmoil in emerging markets and more signs the Fed won’t need to take a more aggressive path of […]

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Borrowers: The Flat Yield Curve May be Your Friend

With all the talk of the flat yield curve in the financial media these days, and the impending doom and gloom it supposedly foretells, it’s a good time to get back to basics. If you’ve questioned your understanding of yield curves recently, now’s your chance to get caught up. In the paragraphs below, we’ll review […]

Fed Takes Center Stage as Markets Wonder What a World of Higher Rates Will Bring

Last Week: Interest rates were notably higher as equities were modestly lower amid headwinds from a spike in oil prices. The yield on the US 10-year Treasury note rose 12 basis points to 3.08%, settling a tad lower than the 3.12% multiyear high hit mid-week. 1-month LIBOR followed suit, wrapping the week at 1.9527% after […]

Scant Signs of Inflation Imply Only Two More Fed Hikes This Year

Last Week: Interest rates were mixed as equities showed a solid advance. Yields on US 10-year Treasury notes were unchanged at 2.96% – despite topping 3% once again mid-week – while 1-month LIBOR declined to 1.9187% from 1.9285% the week prior. Oil hit $71.17 – its highest level since December 2014 – while the US […]

Lukewarm Jobs Report Renders June Hike a Sure Thing

Last Week: Interest rates were mixed while equities were slightly lower despite very strong earnings reports and a very busy data and event calendar. Yields on US 10-year notes were unchanged at 2.96%, while 1-month LIBOR notched higher to 1.9277%, as last Friday’s employment report showed only very modest wage pressures. The US Dollar strengthened […]