FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 04/05/21

The BLS reported Friday that the US added nearly 1,000,000 jobs in March, a number well above the supposed consensus of 675,000 jobs. It was what the market has been looking for - the arrival of the end-of-the-virus-boom. However, even a booming jobs report that showed job growth acro...

Archegos provides yet another anecdote that the expansive global derivatives marketplace is at the epicenter of leverage and speculative excess. From numerous reports, it appears Archegos had fund equity of around $10 billion. Positions have been estimated in the range of $50 billion ...

Despite a weaker February, more forward-looking data remains robust and the economic growth outlook is strong. The concern that's developing is, of course, on inflation. We are likely to see a move higher in inflation in the near term. Strategas Chief Economist Don Rissmiller dive...

As Treasury yields trended higher, we saw continued outperformance in taxable municipals as spreads continued to tighten. At the end of last year, we started selling some of our longer maturities, with an emphasis on corporates as their spreads tightened faster than taxable municipals...

With Brent crude oil attacking $65 and U.S. home prices up 10% over the last year, to name just two inflation indicators, it may be wise to recall that the 10-Year t-note touched 3.24% as recently as November 2018. The Street expects the Federal Reserve (Fed) to hold off on rate hikes...

Biden's infrastructure plan came and went without major surprises. We argue that the steady drumbeat of strong economic data is the more important factor in dictating the pace of higher USD rates in the near term. An additional fiscal package is merely nice to have. The rest of th...

The recent government bond yield spike has pressured tech stocks, yet we are still constructive on technology both on tactical and strategic horizons. The Federal Reserve made clear its intent to stay behind the curve on inflation, keeping short-term rates low for longer than they wou...

The bond market is pushing long rates up for the Fed while its balance sheet is growing at $120 billion per month. Because the Fed does not want to do any tightening, even though it expects to see an uptick in inflation because of the pending reopening of the economy, I think the pres...

It appears that bond markets are returning to pricing the economic recovery. Quarter-end flow might still complicate price action, but US data later this week should bring rates back on their upward trend. In Europe, the release of Spanish and German inflation data should provide ...

Stocks were more mixed last week, with large caps up and small caps down. Markets continue to trade on the expectation of a post-virus boom, but the economic data hasn't been on the same page recently. Perception is what drives markets. Through interest rates and exchange rates an...