Lingering uncertainty over Greece, U.S. economic growth, and the Fed may continue to create a tug-of-war on bond prices that will likely continue to lead to a low-return environment.

We see a potentially brighter future ahead for municipal bonds, despite a difficult second quarter thus far, due to still attractive valuations, higher yields, and a favorable summer seasonal period.

A lack of liquidity continues to plague the bond market, as indicated by elevated dealer holdings of long-term bonds and light trading volume. Volatility may remain elevated in the short term.

Unlike the taper tantrum, which was driven by fears over the end of Fed stimulus, the current pullback is being driven by a position imbalance in our view.

Europe bond weakness spilled over to the U.S. as investors look past week domestic data and forward to a better second half of 2015.

Intermediate to long-term Treasury yields increased by 0.01% to 0.11% for the week ending April 24, 2015, despite weaker economic data.