Insights

We believe that periods of higher bond market volatility demonstrate the need for proactive tax loss harvesting and tax-loss crossing in bond portfolios throughout the year, rather than waiting until tax-season or year-end.

Treasury yields moved modestly higher in April, as markets responded to resilient economic data, elevated inflation readings, and higher energy prices.

The U.S. Treasury curve shifted higher across the maturity spectrum with yields rising approximately 40bps in the 2- through 10-year range and 30bps on the long end. The move reflected persistent inflation pressures and a shift in market sentiment regarding the likelihood of a Federal Reserve cut in 2026.

In February, Treasury yields fell across the curve, and the 10-year yield declined 30 basis points, as buyers turned to Treasuries amidst potential signs of the disinflationary power of AI, rising geopolitical tensions and worries about private credit.

Treasury yields rose modestly across the curve during January, with the 2-year and 10-year maturities seeing increases of 5 basis points, as markets adjusted to shifting economic data.

Fixed-income market participants often quote the term “yield,” but the word’s context could be misunderstood because various types of yield exist and each is calculated differently.

In October 2025, the Federal Open Market Committee cut interest rates by 25bps to a range of 3.75 to 4.00 percent and announced an end to quantitative tightening in December.

Duration is one of the most important concepts for bondholders to understand as they review the performance of their fixed income investments.