Highlights A change of seasons should be noted by municipal investors, as a seasonal increase in new issuance may be a catalyst to lower returns after a strong 2014. It is not uncommon for revenues to slow as the economy matures, and we do not view the slowdown in state tax revenues as worrisome for…

Highlights Despite recent weakness, bonds continue to discount the pace and magnitude of Fed rate hikes. A few facets of this week’s Fed meeting may reveal whether the recent pullback in bonds continues to stabilize. Fed Nerves Bonds continue to exhibit nervousness ahead of this week’s Federal Reserve (Fed) meeting. Bond prices weakened for seven…

Highlights The combination of additional cuts to overnight borrowing rates and the announcement of the ABS purchase program was slightly more than expected from the ECB. Bond markets sent growth signals in response to ECB action in the form of higher yields, higher inflation expectations, and a steeper yield curve. Growth Signals Global bond markets…

Highlights Although the decline in US Treasury yields has been significant in 2014, it is not quite at an extreme when viewed historically. However, the decline in European government bond yields has reached an extreme. Given the influence of European government bond yields on U.S. yields, this week’s ECB meeting may determine the market’s next…