Bond yields continued their march higher as the Federal Reserve has been unrelenting in raising their target rate in their stance on wanting to curb inflation. Unfortunately, they are yet to be successful and many bond investors are choosing the sidelines versus the frontlines as monetary losses mount. The Bloomberg Aggregate Index was down about 4.75% for the quarter, bringing the year-to-date performance number down 14.61%. The less rate-sensitive Bloomberg Intermediate Govt./Credit Index finished down 3.06% on the quarter. Corporate bonds and Agency MBS lost ground as worries surrounding quantitative tightening amplified angst in the agency space and economic growth concerns pressured corporates.
Read the full report for more information on Fixed Income Overview, Credit Spreads, The Economy, and the Fed; as well as our Fourth Quarter 2022 Investment Strategy.