Bond Market Update

Market Minute

April 2022 – Scott Rosenquist, CFA®

The bond market had its worst quarterly return in decades, down 6% as bond yields rose during the quarter and the Federal Reserve sharpened its focus on inflation. Bond prices move inversely with yields. The unemployment rate now at 3.6%, is near pre-pandemic levels but inflation continues to stay stubbornly elevated. The Federal Reserve raised interest rates by a quarter percentage point after its March meeting, the first-rate increase since 2018, and signaled six more increases for the year. As the Federal Reserve’s plans for fighting inflation became clearer, the bond market responded by quickly adjusting yields higher across the entire curve.

Continue reading →

The Fight Against Inflation

Market Memo

March 2022 – By Kyle Rohrwasser

On February 21st Putin announced that Russia would recognize the sovereignty of the two western republics of Ukraine, which was immediately met with NATO sanctions. Quickly following, Russian forces moved deeper into Ukraine on February 24th. Within the week, technological, financial, and political sanctions had been handed out with intent to punish Russia for the occupation of Ukraine. See tracking sanctions against Russia here.

Continue reading →

Oil Shock?  Not So Much

March 2022 – By Bob Veres

If there is one significant fallout that most economists expect to land on American consumers as a result of the war in Ukraine, it is higher gas prices.  Prices tend to reflect supply and demand, and if there are sanctions on Russia’s ability to export oil, that will reduce supply without any anticipated change in demand.  It is estimated that roughly 2.3 million barrels a day of Russia’s 4.6 million output flows to Western nations.

Continue reading →