Bond Notes

The last week's 20 basis point move in the 10-year treasury from 4.80% to 4.60% indicates the economy continues to weaken. This speed of the drop suggests some panic short covering from hedge funds and others who were betting on much higher inflation. We would take a little off the table on the longest maturity positions.












Strategy update: We are still long maturity relative to benchmarks in the Dynamic Duration Select and Core Fixed Income Strategies but are tempering the bet today by selling approximately one-third of the long-term security position and redeploying to intermediate term.