Baker Market Update

Chaos and confusion in UK economic policy sent shockwaves rippling through markets this week, right on the heels of the Fed’s third consecutive 75bps rate…

Bond yields surged 21-29bp in the 2-10yr part of the curve this week as the Fed hiked rates 75bp for the 3rd consecutive meeting, the…

The cost of borrowing continues to rise in order to fight the rising cost of everything else. The great post-pandemic inflation is very much alive,…

The Federal Reserve has numerous tools at its disposal that can be used to conduct monetary policy. Rate moves, reserve requirements, open market operations, asset…

Bond yields drifted higher this week as markets continued to digest the blunt words of Fed Chairman Powell last Friday regarding the central bank’s “overarching…

It’s the last week in August and that means two things: football season is about to kick off, and the Federal Reserve is hosting its…

Bond yields rose 10-16bp in the 3-10yr part of the curve this week despite weak housing data as multiple Fed officials gave mixed signals on…

“Today we received news that our economy had 0 percent inflation in the month of July.” stated President Biden last Wednesday morning after Consumer Price…

In the last forty-five days, the yield on the 10yr T-Note has traded in a 100bps range, from a low of 2.51% to a high…

Financial markets are very good at discounting future events. The anticipatory pricing-in of expected future Fed policy changes, for example, is already baked in the…

Bond prices continued to rally this week and the yield curve flattened further as a slew of negative housing data kept the market squarely focused…

It was a hot midsummer week, actually and metaphorically. Temperatures were about as high as expected, but inflation rates were even higher. Consumer prices over…

This shortened post-holiday week began with signs of a hawkish Fed, underscored by minutes from the June FOMC meeting and comments from two policymakers who…

Don’t look now, but the bond market has rallied like a monster in the last two weeks. After reaching 3.50%, the highest level in eleven…

Bond prices continued to rally this week with the 3-year Treasury yield falling 24bp and the 10-year down 11bp as of this writing. On the…

As we approach the mid-point of the year, all eyes have been focused on the Fed and their “expeditious” determination to stamp out inflation. An…

More volatility in the bond market this week as Treasury yields edged higher and the curve flattened. The 2Yr T-Note increased over 30 basis points…

As the first week of summer began, Federal Reserve Vice-Chair Lael Brainard stuck to the script on aggressive monetary policy by clarifying her support for…

This week showed a continuation of recent trends, with one exception. Economic reports continued to come in weaker than expected as the impact of higher…

Most financial markets got clobbered again this week as Fed Chairman Powell reiterated the Fed’s intention to raise interest rates as much as is necessary…