SGOV - Total Return Gov/Credit Second-Quarter Review

2024-06-28 00:45:00 ET

Summary

• During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates.
• The 10-year Treasury yield fluctuated between a high of 4.705% and a low of 4.222% over the course of the quarter.
• Our long-term outlook anticipates lower interest rates, as we expect the Federal Reserve to begin cutting rates later in the second half of the year.

During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates. The 10-year Treasury yield ( US10Y ) fluctuated between a high of 4.705% and a low of 4.222% over the course of the quarter. Despite this volatility, the net result was only a slight increase in yields compared to the start of the quarter. The most significant move was in the 2-year Treasury, which rose 12.2 basis points to 4.743% as of June 25, 2024. The 10-year and 30-year Treasuries approached the end of the quarter up just 4.7 basis points to 4.249% and 3.5 basis points to 4.378%, respectively. The complete Treasury yield curve movements for the quarter are detailed below....

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