Baird Advisors Fixed Income Market Commentary March 2014

The yield curve flattened significantly this quarter as the 30-year Treasury yield fell 41 bps and the 2-year rose 4 bps. Weakness in weather-impacted US economic data, emerging market turmoil, and escalating geopolitical risks (i.e. Russia/Ukraine crisis) pushed intermediated and long-term yields lower. The Fed continued tapering QE by $10 billion at each meeting, slowing the rate of purchases to $55 billion per month from the $85 billion peak in December.

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