The latest Consumer Price Index data revealed that inflation fell 0.1% in the month of June, putting the 12-month rate at 3%, the lowest level in 3 years. Treasury yields (^TNX ^TYX, ^FVX) have begun to dip in response to this morning’s inflation print.
abrdn head of North American fixed income Jonathan Mondillo joins Catalysts to discuss the bond market outlook after the latest CPI data:
"I think that really depends on whether you’re thinking through an institutional investor lens or a retail investor lens. I’d say that we think Treasuries are good. Obviously, we see that with the rally this morning, we actually think corporate bonds look really attractive at this moment for institutional investors. But I think the real shining diamond as it is right now, for those investors that can take advantage of the tax exemption, is tax-exempt munis [municipal bonds]. They’ve outperformed on a year-to-date basis despite the rally in Treasury rates. They continue to compress. We continue to see outperformance."
#stockmarket #Fed #stocks
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