Interest Rate Update – June

Last week, the benchmark 10-year treasury went as high as .92%, the highest point since late February. Since then, Treasury yields have fallen as a result of dovish comments from the Federal Reserve along with fears of increasing infection rates of COVID-19 across markets in the United States. According to a 6/11/2020 article in Bloomberg by Liz McCormick, “Fed Chairman Jerome Powell said the central bank would continue to use its “full range of tools.” Policy makers’ “lower-for-longer message” boosted the belly of the curve, while lengthier maturities were still struggling with the weight of government-debt sales to come…”