FMNY - Bonds First Quarter - A Tale Of Two Markets And Tariffs
2025-04-10 04:55:00 ET
Summary
- Q1 2025 saw yields on US Treasuries rise at the start of the year with the anticipation of Trump’s inauguration and the expectation for greater spending and for higher potential inflation pushing yields higher in early January.
- After the initial rise in yields to start the year, economic numbers supporting a slowing economy began to take hold.
- Muni bond yields were not reacting to economic news as much as to political news.
By John R. Mousseau, CFA
The first quarter of 2025 saw yields on US Treasuries (Tsy) rise at the start of the year with the anticipation of Donald Trump’s inauguration and the expectation for greater spending and for higher potential inflation pushing yields higher in early January. The remainder of the quarter and the first part of April saw Treasury yields come down on the back of weaker economic news and then a large drop in yields in early April on the tariffs that the administration revealed last week....
Bonds First Quarter - A Tale Of Two Markets And Tariffs