Market Commentary

Treasuries rallied sharply yesterday with the belly of the curve leading the way. The five and seven year Treasury notes rallied by 8-9 basis points, while the front and long end rallied by only 1.5 basis points.  The rally was driven by weaker than expected durable goods orders and the prospects of slower growth as suggested by the Fed’s Beige book.  The Atlanta and Chicago Fed banks reported a slowdown in growth, the Cleveland and Kansas City Fed banks reported stalled conditions. In the credit markets, three-month Libor continues to set lower, while swap spreads continued to narrow with twos through fives tightening by 3-5 basis points. The higher yielding fixed income sectors continue to be well bid as investors grab for yield at any reasonable cost. Equities snapped for a day win streak, posting modest losses on the trading session. The trade weighted dollar continues to be offered as investors grow more comfortable with risk assets.        

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Dear Client:

I am very pleased to inform you that I have accepted the position of President at Balance Sheet Solutions. In my new role, I will oversee the investment advisory and broker-dealer teams and steer trading and analytic efforts. I hope to be able to name an Executive Director of Advisory Services very soon. Until that time, I will continue to personally direct the investment advisory activities.