Yields Ease as Credit Markets Grind Tighter

Treasury yields declined following a mixed April jobs report, while credit markets saw broad spread tightening and positive returns across fixed income sectors.

Key Takeaways

• 1.April payrolls surpassed expectations, but internal labor market stress caused Treasury yields to fall slightly.
• 2.Credit spreads across investment grade and high yield narrowed further as risk sentiment remained firm.
• 3.The Fed remains in a data-dependent pause, with upcoming CPI and retail sales data seen as pivotal for future policy.

Table of Contents

• Market recap
• Outlook
• Key takeaways
• What we're watching
• 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

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