FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 10/11/21

The ongoing Evergrande collapse, on top of the recent flurry of regulatory pivots, has raised questions about China’s role as the world’s growth engine. Eurozone input prices are rising at the fastest rate on record. U.S. companies reported capacity constraints and d...

A decent US jobs figure will allow the Fed to announce the taper next month. Inflation will keep the pressure on the Fed, arguing for further steepening of the curve into next week's bond supply. The ECB has yet to figure out how to react to higher inflation, but also avoid the ne...

It's hard to see the economy stumbling when liquidity is super-abundant and borrowing costs are incredibly low. Even if the Fed finishes its tapering and starts raising its target funds rate well before anyone currently expects them to, they will still have to counteract the super-abu...

Risk-adjusted performance continued to rise in September for the Global Market Index (GMI), an unmanaged, market-value-weighted portfolio that holds all the major asset classes (except cash). GMI’s 0.97 Sharpe ratio is close to the highest levels reached in recent history. ...

When stock traders talk about bonds it’s often a sign of trouble in the markets. And last week’s bond selloff and recovery is a perfect example. Ryder System is one of those companies that often flies under the radar in the stock market. The S&P 500 also closed t...

Inflation concerns are a problem for fixed income markets. But it is a return to positive economic surprises that will prove the most potent driver of higher rates in the coming weeks. As the ECB diverts the focus away from the amount of its purchases, we think sovereign spreads s...

We view the U.S. Treasury yield spike as resolving a disconnect between the powerful restart and lower yields in recent months, and stay tactically pro-risk. U.S. 10-year yields jumped to the highest level in three months. Markets are prone to volatility, but ultimately we see yields ...

Most of the market “data” everyone obsesses about is just noise, especially when it comes to economic data. We just finished another quarter during which a lot of things were supposedly newsworthy but somehow produced almost nothing in the way of major market movements. ...

The Treasury curve continued to flatten during the third quarter of 2021, with short-term Treasury yields rising while longer Treasury yields declined. As the Treasury curve flattened, we saw minimal movement in the already tight spreads of corporates and taxable municipals. At th...

Rates have adjusted higher over the course of the week, with the unabated rise in energy prices adding to the backdrop of central banks having turned more hawkish. Next week's US jobs data could cement a Fed taper announcement in November and add to the markets' feeling of a mistake i...