Economic and Fixed Income Insights, June 4, 2019

On June 3, St. Louis Federal Reserve Bank President James Bullard said that unresolved trade disputes and below-target inflation “suggest that the central bank needs to tread carefully in order to help sustain the economic expansion” and indicated that a rate cut could be warranted. Meanwhile, interest rates remain highly volatile on continued US trade tension which now involves Mexico as well as China.  The 10-year UST finished the week 14 basis points lower to yield 2.13 percent, while the long bond fell 10 basis points to 2.61 percent.  Municipal bonds underperformed Treasuries, with the 10-year and 30-year MMD finishing 7 and 8 basis points lower for the week respectively.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of June 4, 2019.

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