AFB - Market Review And Outlook: Rate Stabilization Supply Helped Munis
By Ted Vogel, Portfolio Specialist, Municipal Fixed Income
"Guard against the impostures of pretended patriotism."
- George Washington
Concerns over brisk economic growth, potential trade wars and increased inflation put upward pressure on bond yields during the second quarter. In addition, yields were pushed higher by increased U.S. Treasury supply and conjecture over the path and timing of rate hikes by the Federal Reserve. Yield increases were most pronounced at the front end of the curve, with the yield on the two-year U.S. Treasury note increasing from 2.27% to 2.53%, the 10-year from 2.74% to