While the excitement of equities often earns the headline, it seems fixed income is finally getting the spotlight. This fervor comes amid a groundswell of concern among investors witnessing rising yields. Furthermore, all-time high durations in the U.S. bond market have done little to ease concerns. Let's take a look at some of the figures over the past few weeks.
The 10-year Treasury yield experienced the largest increase in 15 years over just the previous two weeks, rising nearly 100 bps (1.36% to 2.34%) from its July post-Brexit low. This represents a round trip from its 2015 closing yield of 2.27%. The journey began with a 100 bp decline early in the year, and now, following the Trump election, it has risen 100 bps. However, many expect these yield levels to abate despite these dramatic, short-term swings. In the meantime, investors have eschewed Treasuries for equities as the inauguration looms…
