News & Events

The Weekly Wrap - April 8, 2022

The bond market experienced an attack of the Federal Reserve Bs –Brainard and Bullard – whose hawkish comments accelerated the upward move in long-term Treasury yields this week. Both advocated a more aggressive response to galloping inflation, cementing the prospect of a 50 basis point increase in the Federal funds rate at the early May policy meeting. What’s more, St. Louis Fed president Bullard said he would like to see the rate go as high as 3.00– 3.25 percent over the second half of this year. For a market that had been pricing in about 100 basis points less, that’s all it needed to drive the 10-year Treasury yield up to a three-year high of over 2.70 percent on Friday, about 30 basis points higher than a week earlier.