All eyes are on the US 10-year yield. Will the peak hold?
Last month on May 9th, the US 10-year yield peaked at 3.21%. This weakness in the bond market then backed off over the next few weeks, but today began nosing higher. With all the debt in our economy, higher rates slow growth as interest expense and cost of capital rise.
The markets are wrestling with a conundrum: will interest rates of 3% slow economic growth enough to tame inflation or is the Fed's unwillingness to raise rates anywhere close to our 8% inflation feeding the inflation monster?
It is too early to tell.
Chief Investment Officer
Lloyds Intrepid Wealth Management
Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.
© 2022 Lloyds Intrepid LLC
Comments