Fixed Income Weekly Commentary

Fixed income markets faced negative returns as Treasury yields rose across the curve in a bear-steepening trend ahead of critical upcoming inflation data. Despite yield pressure and record investment grade supply, credit volatility remains contained and fund inflows have held firm.

Key Takeaways

• 1.The 10-year Treasury yield rose 8 bps to 4.56% as rates bear steepened across the curve in a quiet week.
• 2.Fixed income spreads widened modestly, though credit volatility remained contained and investment grade fund inflows stayed above the four-week average.
• 3.Inflation data (CPI, PPI) will be critical in shaping the future rate outlook.

Table of Contents

• Market recap
• Outlook
• Key takeaways
• Weekly fixed income snapshot
• U.S. Treasuries
• Tax-exempt municipals
• Taxable municipals
• Investment grade corporates
• U.S. high yield corporates
• Preferred securities
• Senior loans
• Securitized credit
• Global emerging markets
• U.S. Treasury market yields
• Fixed income characteristics and returns

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