Tuesday, March 23, 2021 |
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MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino Jeff Goble • Nicole Burczyk • Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris Brian Schaff • Josh Kiefer • Robert Schuyler • Tom Toburen • Aaron Hemphill |
| US Treasury Market | |||||||||||
| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 03/16/21 | 0.01 | 0.02 | 0.06 | 0.07 | 0.15 | 0.33 | 0.83 | 1.28 | 1.62 | 2.30 | 2.38 |
| 03/17/21 | 0.01 | 0.02 | 0.05 | 0.07 | 0.13 | 0.29 | 0.80 | 1.27 | 1.63 | 2.32 | 2.42 |
| 03/18/21 | 0.01 | 0.01 | 0.03 | 0.08 | 0.16 | 0.33 | 0.86 | 1.35 | 1.71 | 2.36 | 2.45 |
| 03/19/21 | 0.01 | 0.01 | 0.03 | 0.07 | 0.16 | 0.33 | 0.90 | 1.38 | 1.74 | 2.36 | 2.45 |
| 03/22/21 | 0.02 | 0.03 | 0.05 | 0.06 | 0.15 | 0.32 | 0.87 | 1.34 | 1.69 | 2.29 | 2.38 |
About Last Week
With fixed income rates trending higher, due mainly to inflation worries and stimulus dollars, Fed Chair Powell spent much of his time last week addressing these issues.
Per Bloomberg, Fed Chairman Powell spoke too:
1. The Fed is not worried (a lot) about rate rises lately.
The chart of the 10 year US Treasury, shown below, illustrates the current yield of roughly 1.73% is near the level it was pre-pandemic over a year ago.
2. The Fed is willing to let the economy run “hot” to get us out of the covid pandemic.
3. He signaled that zero percent rates will likely be in place through 2023.
Jerome Powell commented that “the fundamental change in our framework is that we’re not going to act preemptively based on forecasts for the most part and we’re going to wait to see actual data. I would be concerned by disorderly conditions in markets or by a persistent tightening of financial conditions that threaten the achievement of our goals”.
Did Chair Powell slow the trajectory of increasing rates with his comments?
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