Insights

Treasury yields increased in July on favorable economic data and the Federal Reserve’s decision to hold rates steady.

U.S. Treasury Curve: Treasury yields fell in June and steepened for the quarter, with yields falling in the 1- to 10-year range and increasing beyond 10 years.

Tight credit spreads, solid demand, stable credit fundamentals, and tariff-related uncertainty drive a modest overweight to corporate bonds.

Uncertainty around fiscal deficits and trade policy dampened demand for Treasury bonds in May.