Fixed Income Monthly Commentary – December 2020

A tumultuous year ended with the Treasury yield curve steepening slightly in December as renewed optimism for an economic recovery buoyed by the start of COVID-19 inoculations helped push inflation expectations as well as intermediate and long-term rates higher. Specifically, yields on maturities beyond five years rose 3-8 basis points while rates on shorter issues were flat to slightly lower. The month began with a sharp increase in longer-term rates due to a confluence of developments. Fiscal stimulus talks that had stalled throughout the fall resurfaced with a bipartisan group of senators reportedly discussing a $900 billion plan. Further, Fed Chairman Powell displayed …

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Veritable Notes

Published on // January 12, 2021
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