Treasury Curve Flattening Continues, Omicron Concerns Surface, Volatility Returns

Stable Short Rates, Falling Long-Term Yields Leads to Flatter Curve, The Infrastructure Bill (IIJA) Passes Includes $550B of New Spending

Municipal Yields Rise, Muni Provisions Out of “Build Back Better” Plan, Weakest Cities/States Show Fiscal Improvement; Puerto Rico Prepares to Exit Bankruptcy, Upward Rate Movements Push October Returns Negative

Expectations for Fed Policy Shift, Treasury Curve Flattens, Planned Fiscal Programs Downsized, Credit Wider, Mortgages Tighter in October; Both Tighter YTD, Agg Returns Modestly Negative in October; YTD Remains Negative

Yield Curve Flattens as Yields Rise, Potential Turmoil at the Fed, Increased Volatility Impacts Economic Recovery, Spreads Mostly Widen During Q3; Tighter YTD, Market Returns Negative in Sept; Mixed QTD and YTD

Municipal Yields Rise and Curve Steepens in Q3, Key Municipal Revisions Included in Biden’s Infrastructure Draft, Shorter and Lower-Quality Led Performance in Q3

Yields Rise Modestly as Fed Confirms Tapering Likely to Begin in 2021; Spreads Relatively Unchanged in August; Market Returns Generally Negative in August, Mixed YTD

Municipal Yields Rise and Curve Steepens, Municipal Credit Ratings Improving Despite Evident Natural Disaster Risks, Lower-Quality Outperformance Stalls and Long-Term Maturities Lag.

Yield continue to fall and curve flattens as Fed signals status quo; Delta variant increases COVID-19 cases.

Trend of lower rates and flatter curve continues in July.

Baird Advisors provides timely insights about the current interest rate environment for the baby boom generation.