BKN - Market Review And Outlook - Conflicting Forces: Rates And Technicals
By Ted Vogel, Portfolio Specialist, Municipal Fixed Income
"Inflation is taxation without legislation." - Milton Friedman
U.S. Treasury rates increased across the yield curve in the first quarter as market attention focused on generally better-than-expected economic data releases and uncertainty surrounding the impact of last year's tax reform on deficits and inflation. The rate movement was most pronounced in the front end of the yield curve, with the two-year U.S. Treasury yield increasing from 1.88% to 2.27%, the five-year from 2.21% to 2.56%, the 10-year from 2.41% to 2.74%, and the 30-year from 2.74% to