By Mark R. Anderson, CFA

Bonds continued their march higher as Treasury yields gapped lower on European growth concerns, spurred by the surprise Brexit vote for the United Kingdom to leave the E.U. The broad- based bond market ended the quarter on a very strong note as investors flocked to safe-haven assets. The Barclays Aggregate Index finished 2.21% higher for the quarter, driving a 5.31% year-to-date gain. Low and even negative rates abroad have pushed investors head first into the U.S. markets and nowhere is this more apparent than in the Treasury sector. Longer-dated Treasury holdings have done particularly well with the 20+ year component of the index up an astonishing 15.8% for the year. The net result of this action is a yield curve that is both low and flat, not something that signals strong growth or confidence.