JEMTF - Columbia Threadneedle Fixed-Income Monitor: May 2025
2025-05-15 07:03:00 ET
Summary
- Financial markets weathered pronounced volatility during April after the White House announced reciprocal tariffs against global trading partners.
- Credit spreads widened as equity prices fell. High-yield corporate bonds felt the brunt of this as markets reevaluated the risk of recession stemming from escalating trade tensions.
- Municipal bond market performance diverged from U.S. Treasuries. The combination of outflows, new issuance and elevated interest rate volatility pushed yields on investment-grade-rated municipals to an 18-month high.
By Katherine Nuss ...
Columbia Threadneedle Fixed-Income Monitor: May 2025