FYI: The Federal Reserve elected to maintain rates in May but followed up with a 0.25-point rise in June, continuing a trajectory of tighter monetary policy that began at the beginning of 2016. Over the quarter, the yield on the 10-year U.S. Treasury oscillated between 3.0% and 3.3%, driven by expectations of rising inflation and continued concerns over growing U.S. government debt. The 10-year U.S. Treasury ended the quarter at 2.9%, well above its 2.5% starting point for the year. In general, yields on short- to intermediate-term bonds increased more than those on long bonds, contributing to a flattening of the yield curve. As of June 30, the difference between the 30-year and five-year points tightened to 25 basis points at the end of the period from 42 basis points at the quarter’s start.
Regards,
Ted
https://www.morningstar.com/articles/871549/how-did-bond-funds-fare-in-the-second-quarter.html
