Market Review
Though a new year has officially begun, global communities are still navigating the same risks, including war, inflation, COVID-19, and severe weather.
Read moreThe FOMC raised rates another 75 basis points (bps) in November. Yields fell and the curve flattened after October inflation data surprised to the downside. The 10-year U.S. Treasury yield closed on the lows for the month at 3.62%. The 2-year/10-year curve inverted further to -74 bps, signaling a looming recession and expectations of a Fed pivot in the future.
Read moreAs expected, tension was high at this year’s international climate change conference, COP27, as global policymakers debated the key challenges and potential solutions needed to keep the goals of the Paris Agreement within reach.
Read moreYields continued to rise in October as inflationary concerns persisted and political developments overseas leaked into U.S. markets. The 10-year U.S. Treasury note yield reached the highest levels in over a decade, touching 4.24% before closing the month at 4.07%. Real yields moderated as inflation protected securities (TIPS) outperformed nominal Treasuries.
Read moreA writer from 19th century France once noted that the more things change, the more they stay the same. This phrase could well apply to the market dynamics of the third quarter of 2022. Extreme volatility, a strengthening U.S. dollar, negative equity returns, and rising bond yields, all present throughout 2022, continued to saturate the investment landscape.
Read moreRate volatility picked up following a surprisingly strong July employment report and was further supported by Fed speakers working to move market participants from a “dovish pivot” toward a “higher for longer” theme for federal funds. Chair Powell’s short speech at Jackson Hole reinforced the committee’s commitment to squash inflation with expectations of a sustained period of higher overnight rates.
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