Treasury prices rose over the course of the week as the Federal Reserve signaled that monetary policy would be eased later this year.
The Treasury rally slowed last week while consumer inflation expectations hit record lows. The Consumer Price Index excluding food and energy rose 2.0% in May over a year ago and 0.1% from the prior month, the Labor Department said Wednesday.
U.S. Treasury yields rallied on Friday after geopolitical turmoil continued to rattle financial markets last week. President Donald Trump mentioned the United States would be willing to pull back its ban against Huawei Technologies Inc. as part of a trade deal.
Yields fell last week on softer-than-expected inflation data and an escalation in trade tensions between the U.S. and China, with the yield on the U.S. 10-year Treasury ending the week below 2.50%.
Treasury prices rose over the course of the week on economic news and lower inflation expectations. On Wednesday, the German Ifo Business Climate Index fell 0.5 points, drawing concerns about the German economy and increasing the appetite for U.S.
Despite the Mueller report leading news last Thursday, it was a fairly benign week for Treasuries. The variable rate municipal-bond market leapt last week, however; likely from retail investors using the bonds as funding for paying their tax bills.
Sawyer Wealth Management Founder and CEO, Charles Sawyer Jr. was recently featured in the Five Star Professional Spotlight.
Bond prices continued to rally last week as the market digests lower rate expectations. Concurrent to rising bond prices, the yield curve has flattened through the first quarter of 2019.
