Fixed Income Weekly Primer

Fixed income yields remained relatively stable over the past week despite strong labor data and volatility. Markets are now focused on upcoming April inflation data, where energy disruptions are expected to drive a wedge between headline and core readings.

Key Takeaways

• 1.Yields ended the week largely unchanged despite mid-week volatility, with the 5-year Treasury finishing at 4.02%.
• 2.April Nonfarm Payrolls significantly exceeded expectations at 115,000 versus the 65,000 forecast.
• 3.Energy market disruptions from the closure of the Strait of Hormuz are causing a notable divergence between headline and core inflation expectations.

Table of Contents

• Fixed Income Weekly Primer

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