The bond market was a somewhat boring place to be during the second quarter as a mixed bag of economic news, muted job trends, tight credit spreads, and a range-bound but flattening Treasury market resulted in positive returns for the quarter. The benchmark 10-yr Treasury started the quarter at 1.74% and finished June at 1.47%, so there appears to be enough believers that rates will stay low awhile longer. Treasuries and CMBS performed in line with the Bloomberg Barclays Aggregate Index, which was up 1.83%. Corporate debt performed very well, finishing over 3.5%, while ABS and fixed-rate MBS posted returns in the 0.3% range. The Bloomberg Barclays Intermediate Government/Credit Index finished at 0.98% for the quarter while some shorter duration indices were essentially flat.

Read the full newsletter here: INVESTMENT OUTLOOK Q2 2021