Total Return Gov/Credit Second-Quarter Review

seekingalpha06-28 12:45

During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates.The 10-year...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2446544167?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1324277066/image_1324277066.jpg","is_english":true,"pubTime":"2024-06-28 12:45","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2446544167","market":"sg","top_or_hot":-1,"title":"Total Return Gov/Credit Second-Quarter Review","media":"seekingalpha","content":"<div>\n<p>During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates.The 10-year...</p>\n\n<a href=\"https://seekingalpha.com/article/4701426-total-return-govcredit-second-quarter-review\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Total Return Gov/Credit Second-Quarter Review</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTotal Return Gov/Credit Second-Quarter Review\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-28 12:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4701426-total-return-govcredit-second-quarter-review><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates.The 10-year...</p>\n\n<a href=\"https://seekingalpha.com/article/4701426-total-return-govcredit-second-quarter-review\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TSS","symbol_name":"Total System Services","start_time":0,"source_url":"https://seekingalpha.com/article/4701426-total-return-govcredit-second-quarter-review","article_id":"2446544167","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1324277066/image_1324277066.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2446544167","pubTimestamp":1719549900,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates.The 10-year","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TSS":"Total System Services"},"translate_title":"政府/信贷第二季度总回报回顾","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSS":1,"US10Y.BOND":0.9,"US12M.BOND":0.9,"US2Y.BOND":0.9,"US30Y.BOND":0.9,"US3Y.BOND":0.9,"US5Y.BOND":0.9,"US6M.BOND":0.9,"US7Y.BOND":0.9,"US912797GB79.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates.The 10-year Treasury yield fluctuated between a high of 4.705% and a low of 4.222% over the course of the quarter.Our long-term outlook anticipates lower interest rates, as we expect the Federal Reserve to begin cutting rates later in the second half of the year.   Andrii Yalanskyi/iStock via Getty Images During the second quarter of 2024, the Treasury market experienced heightened volatility as market participants tried to predict when the Federal Reserve would start cutting interest rates. The 10-year Treasury yield (US10Y) fluctuated between a high of 4.705% and a low of 4.222% over the course of the quarter. Despite this volatility, the net result was only a slight increase in yields compared to the start of the quarter. The most significant move was in the 2-year Treasury, which rose 12.2 basis points to 4.743% as of June 25, 2024. The 10-year and 30-year Treasuries approached the end of the quarter up just 4.7 basis points to 4.249% and 3.5 basis points to 4.378%, respectively. The complete Treasury yield curve movements for the quarter are detailed below.    Source: Bloomberg After declining consistently for the past two years, investment-grade corporate and taxable muni spreads halted their downward trend. As of June 25, 2024, the spread on the Bloomberg US Corporate Bond Index increased by 1 basis point to +93, and the spread on the Bloomberg Taxable Muni US AGG Index rose by 4 basis points to +82. As noted in our previous quarterly report, we believe the potential upside in these spread products has been largely realized. As a result, we have begun reducing our overweight position in these securities and increasing our allocation to Treasuries. We expect these spreads to widen further, which would present an opportunity to reinvest in these spread securities later in the year. As we move into the third quarter of 2024, we will closely monitor economic data, with a particular focus on inflation. Our long-term outlook anticipates lower interest rates, as we expect the Federal Reserve to begin cutting rates later in the second half of the year. Accordingly, you can expect us to gradually increase our Treasury exposure over time, as long as spreads remain at or near multiyear lows. Our goal is to maintain higher liquidity levels, which will provide more flexibility as we make strategic adjustments going forward. While taking a conservative approach to credit, we will also seek to be opportunistic in pursuing attractive investment opportunities as they become available. Original Post  Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2446544167"}