Fixed Income Commentary
Still a Bumpy Road for Fixed Income
Core fixed income returns were negative in the second quarter, further exacerbating the largest drawdown on record.
• The Ice BofA US Master Index is down 4.6% in the second quarter
• The Ice BofA US Master Index is down 10.4% year-to-date
• Investment grade corporate bond spreads are much wider in second quarter
• Investment grade bonds underperformed Treasuries by about 4.5% this year
Improving Fundamental Case for Lower Yields
The technical backdrop on Treasuries is quite negative given they are in a clear downtrend regarding price.