Insights

In a volatile market influenced by a technology sector investing trend, Breckinridge’s rules-based security selection process delivered positive risk-adjusted performance in the near term, as it pursues its long-term objectives.

Treasury yields rose across the curve in July, with the 10-year Treasury reaching a year-to-date high and the 30-year yield surpassing 5.20 percent for the first time since 2007.

Treasury yields moved higher at the front end in June, reflecting expectations that the Federal Reserve may hike rates in 2H2026.

After widening in the first quarter on heightened geopolitical risk and an oil shock, corporate bond spreads staged a comeback on a ceasefire in Iran, solid U.S. economic data, and a strong first-quarter earnings cycle.

Treasury yields ended May modestly higher on expectations for a higher-for-longer rate environment.

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.

IG corporates faced a volatile start to 2026, with spreads widening after historically tight levels.

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.