Municipal Market Investment Advisors

"We're in the stay rich business, not the get rich business."
Craig W. Henderson

Thursday, August 16, 2018

Fed’s $4.5 Trillion Balance Sheet - June 30, 2017

As shown in the chart below, the ten year Treasury yield fell from the recent 2.62% high in mid-March to a low of 2.14% in late June before ticking higher to close the quarter at 2.31%. Sluggish GDP growth in the first quarter (initially reported at 0.70% but subsequently revised to 1.40%) coupled with lower than expected April and May employment gains (subsequently revised higher) and modest inflation set the stage for declining yields during most of the period. The municipal market followed the same pattern with ten year prime yields falling from 2.26% at the start of the period to 1.85% in late June and closing the quarter at 2.00%.  Read More > >