Bond Yields Fall After Promising Iran News, Offering Relief Following Latest Mortgage Rate Jump
Mortgage rates surged to a 6.43% 30‑year fixed level as the Iran conflict intensified, pushing borrowing costs higher. Ten‑year Treasury yields fell to around 4.32% after reports of U.S.–Tehran de‑escalation talks, offering a modest relief for mortgage pricing. The Federal Reserve kept policy rates unchanged but lifted its inflation outlook, reflecting uncertainty over the war’s economic fallout. Home‑builder KB Home warned that the conflict is eroding consumer confidence and softening spring sales.
BHK: Ravaged By Higher Rates, Will Remain Under Pressure
BlackRock Core Bond Trust (BHK) has been downgraded to a Sell as higher interest rates and inflationary pressure from the Iran conflict strain its performance. The fund’s portfolio now leans 80% toward investment‑grade corporate credit and carries a 33.9% leverage...
FLOT: One Of My Favourite Low Duration Instruments
The iShares Floating Rate Bond ETF (FLOT) is gaining attention for its low‑duration, variable‑rate exposure that cushions investors against rising interest rates. Its floating‑rate structure delivers yields that outpace traditional cash equivalents and short‑duration bond funds while keeping price volatility...
What Are Retail Bonds and Are They Worth It?
Secured Fixed Income is marketing a three‑year retail bond at 7.5% interest with a £1,000 minimum investment (about $1,270), positioning it against top savings accounts that top out at 4.75%. The product falls under the FCA‑approved "access bond" category, which...
MSD: Best To Avoid For Now And To Reconsider An Entry Point Next Year
Morgan Stanley Emerging Markets Debt Fund (MSD) has delivered strong returns since 2022, buoyed by rising rates, macro improvements, and a weaker dollar. The fund offers high‑yield, diversified exposure to sovereign, corporate and quasi‑sovereign debt across lesser‑tracked emerging markets. Recent...
SRTs-Still-Offer-a-Spread-Premium-over-ABS-Despite-Tightening
Synthetic risk transfer securities (SRTs) continue to trade at a spread premium over comparable asset‑backed securities (ABS), despite a broader tightening of credit markets. Tristan Teoh of Insight Investment notes the premium sits around 30‑50 basis points, reflecting strong investor...
Metrobank Closes Sustainability Bond Offer
Metrobank closed its public offer for the Series F ASEAN Sustainability peso‑denominated bonds a week early, citing strong investor demand. The 1.5‑year bonds carry a fixed 5.4727% coupon and will be listed on the Philippine Dealing & Exchange Corp. on April 14....
No Change in Borrowing Plan for Now – DOF Chief
The Philippines will keep its 2026 borrowing plan unchanged, targeting roughly $48 billion with 77% sourced domestically and 23% from abroad. The peso recently slid to a record low of 60.30 per dollar, heightening foreign‑exchange concerns amid the Middle East crisis....
This Active Bond ETF Just Hit a Key Milestone as Market Vol Rises
The T. Rowe Price Ultra Short‑Term Bond ETF (TBUX) crossed the $1 billion assets‑under‑management mark on March 4, buoyed by more than $100 million of net inflows in the prior month. Now in its fifth year, the fund charges a modest 0.17% expense ratio...
Jeffrey Gundlach: The Case for Rate Cuts Is Falling Apart | CNBC
Jeffrey Gundlach, CEO of DoubleLine, told CNBC that the market’s expectation of imminent Federal Reserve rate cuts is eroding as inflation remains sticky and the two‑year Treasury yield sits above the policy rate. He highlighted a widening gap between calm...
Spain Moots New SFDR Eligibility Pathway for Sovereign Bonds
Spain’s finance ministry has floated a new eligibility pathway that would allow sovereign bonds to be classified as sustainable under the EU’s Sustainable Finance Disclosure Regulation (SFDR). The proposal seeks to broaden the pool of assets that can meet ESG...
Bond And Loan Financing
The article clarifies how municipal bonds differ from bank loans, emphasizing that bonds do not create money while loans do through deposit creation. It walks through a $900 bond issuance, showing how an investment‑bank underwriter sells the securities, deducts fees,...
Policy Paper: Chancellor Meeting with Gilt-Edged Market Makers: Minutes - March 2026
On 23 March 2026 the Chancellor of the Exchequer and the Minister for Pensions convened a meeting with economists from the primary dealer firms that act as wholesale gilt‑edged market makers (GEMMs) at HM Treasury. The session focused on the participants’ views...
India Bonds Seen Lower as Elevated Oil, Higher US Yields Pinch; Debt Sale in Focus
Indian government bond yields slipped on Tuesday as Brent crude hovered above $100 a barrel and U.S. 10‑year Treasury yields steadied near 4.40%, the sharpest sell‑off since October 2023. The benchmark 2035 bond yield was expected to trade between 6.81%...
Asian Corporate Bonds Rebound After Trump Delays Iran Strike
Asian corporate bond markets rallied on Tuesday as geopolitical tension eased following President Donald Trump’s remarks about ongoing talks with Iran. Credit default swaps on investment‑grade Asian debt fell by at least four basis points, signaling reduced perceived risk. At...
SCHR: At Least Avoiding Credit Pressures From Oil-Led Reinflation
The Schwab Intermediate‑Term U.S. Treasury ETF (SCHR) is confronting heightened duration risk as inflation resurges from oil‑driven supply shocks. A 0.4 % increase in its yield‑to‑maturity has already erased roughly 2 % of the fund’s price, underscoring its sensitivity to a steeper...
New Mexico County Seeking to Avoid Bond Default Met Illegally, AG Says
Otero County, New Mexico, convened an emergency commission meeting on March 13 to approve a five‑year ICE contract that would fund a $5.26 million debt‑service payment and prevent default on $18.48 million of bonds tied to a 2007 jail project. The state attorney...
FREMF 2026-K178 Mortgage Trust and Freddie Mac Structured Pass-Through Certificates, Series K-178: Presale Report
DBRS, Inc. assigned provisional (P)AAA(sf) credit ratings to all classes of the FREMF 2026‑K178 Multifamily Mortgage Pass‑Through Certificates and the Freddie Mac Structured Pass‑Through Certificates Series K‑178. The ratings, issued on March 23, 2026, cover Class A‑1, A‑2 and X1 for each series and are marked...
NYC Outlook Takes Another Hit Heading Into $2.65B Deal
New York City is issuing $2.65 billion of general‑obligation bonds, but rating agencies Fitch, KBRA and Moody’s have shifted the city’s outlook to negative, citing a $5.4 billion budget gap and reliance on state‑approved tax hikes. The bond deal comprises four series,...
Buyside Approaches Data Center-Adjacent Bonds with Caution
Municipal bond issuance is accelerating as data‑center projects drive demand for public‑power and water infrastructure, with demand projected to rise 20‑25% annually through 2030. While public‑power issuance is down 33.7% year‑to‑date, water‑sewer issuance is up 15.9%, and analysts forecast up...
Fed Continues to Hold Rates Steady
The Federal Reserve left the target range for the federal funds rate unchanged at 3.5%‑3.75%, extending the pause announced in December 2025. Officials cited elevated uncertainty about the economic outlook and the potential impact of Middle‑East tensions on U.S. growth....
Fed's Goolsbee Says He Could See Circumstances for Rate Hike
Chicago Fed President Austan Goolsbee told CNBC he could envision the Federal Reserve raising interest rates if inflation accelerates amid the Middle‑East conflict, while also acknowledging the possibility of multiple rate cuts if price pressures ease. The Fed left policy...
Chart Of The Day: Treasuries Trashed As Inflation Fears Mount
U.S. Treasury prices have sharply declined as inflation concerns intensify, driven by surging energy commodities. Over the past month, long‑bond futures dropped six points and the 30‑year yield climbed roughly 30 basis points from its pre‑war low to 4.93%. The...
Fed Disappointment May Make This Bond ETF Appealing
The Federal Reserve has signaled no rate cuts until late 2026, disappointing many investors. With rates expected to stay steady and inflation still above target, fixed‑income managers are seeking duration‑neutral options. WisdomTree’s Floating Rate Treasury Fund (USFR), a $16.66 billion ETF...
DoubleLine’s Jeffrey Sherman on the Fed’s TACO Trade & Fixed Income Strategy
At the Exchange conference, DoubleLine deputy CIO Jeffrey Sherman warned that the market’s expectation of a quick Fed rate cut—dubbed the TACO trade—is premature. He said the Fed will stay on autopilot until labor market weakness appears, and he pinpointed...
Muni Monthly: February 2026
Franklin Templeton’s February 2026 Muni Monthly is accompanied by an extensive legal disclaimer that emphasizes the material is for general interest only and not investment advice. The notice clarifies that past performance does not guarantee future results, highlights potential loss...
Nebius Group Announces Closing of Private Offering of Convertible Senior Notes, With Aggregate Gross Proceeds of Approximately $4.3 Billion
Nebius Group N.V. closed a private placement of convertible senior notes, raising roughly $4.3 billion. The offering comprised two series: 1.250% notes due 2031 and 2.625% notes due 2033, sold to qualified institutional buyers under Rule 144A. The capital will fund the...
Vanguard Finally Files for Junk Bond ETF Nearly Two Decades Later
Vanguard announced filing for a U.S. high‑yield corporate bond ETF (VCHY), slated for a June launch, finally entering a market dominated by iShares HYG and State Street JNK since 2007. The fund will track Bloomberg’s US High‑Yield $250 million 2% Issuer...
Japan Weighs Cutting Inflation-Linked Bond Buybacks as Demand Rises
Japan is considering trimming its inflation‑linked government bond buy‑backs to about ¥15 billion per operation for April and June, down from ¥20 billion a month in Q1. The change follows a rise in break‑even inflation rates above 1.9%, indicating stronger investor demand...
Fannie, Freddie Place Large Bids for Mortgage-Backed Securities
Fannie Mae and Freddie Mac have begun placing large orders for mortgage‑backed securities, acting on President Trump’s directive to acquire $200 billion of MBS to help lower mortgage rates. Their retained‑portfolio balances have rebounded to $278 billion, up from $158 billion at the...
What’s Happening in EM: Oil Spikes Upend Local Bonds (Podcast)
Bloomberg’s Emerging Markets podcast notes that soaring oil prices have forced a revision of global interest‑rate expectations, unsettling the once‑popular strategy of investing in emerging‑market local‑currency bonds. The energy price shock is prompting investors to unwind positions as higher rates...
State Street, Voya Seek Shelter From Default Risk
State Street and Voya Investment Management are pivoting toward mortgage‑backed securities as rising oil prices and inflation fears make high‑grade corporate bonds riskier. A Trump‑directed $200 billion purchase program by Fannie Mae and Freddie Mac adds liquidity to the MBS market, narrowing the...
State Street, Voya Seek Shelter From Default Risk
State Street and Voya Investment Management are shifting portfolio allocations away from corporate bonds toward mortgage‑backed securities. The move is driven by rising energy prices and heightened inflation concerns that are elevating default risk in the high‑grade corporate market. Goldman...
Simply Put: Bear Flattening
The U.S. Treasury market is experiencing a bear‑flattening episode, where short‑term yields have risen faster than long‑term yields. Over the past three days the 2‑year yield jumped 23 basis points while the 10‑year climbed 18 basis points, widening the short‑term...
HYMB: Solid High-Yield Muni Bond ETF, Above-Average Tax-Advantaged Income
The SPDR Nuveen Bloomberg High Yield Municipal Bond ETF (HYMB) delivers a 4.5% tax‑free dividend yield, positioning it as a compelling income source for investors in high tax brackets. The fund concentrates on non‑investment‑grade and unrated municipal securities while retaining...
Uncovering Opportunity Amidst Rates Repricing
The escalation of hostilities between the U.S. and Iran has disrupted oil supplies, prompting a reassessment of U.S. interest‑rate expectations. Market participants now price a modest probability of a Fed rate hike, pushing the MOVE index higher and widening rate‑volatility...
Morningstar DBRS Upgrades One Rating and Confirms Three Ratings on Ford Auto Securitization Trust II 2025-A
Morningstar DBRS upgraded the Class B notes of Ford Auto Securitization Trust II 2025‑A to AA (high) from AA (sf) and reaffirmed AAA (sf) ratings for the Class A‑1, A‑2 and A‑3 notes. The upgrade reflects stronger credit enhancement, with...
BUXX: Active ETF With 4.9% Yield, Low Credit Risk, And Low Duration
Strive Enhanced Income Short Maturity ETF (BUXX) is an actively managed fund that targets short‑term investment‑grade debt, emphasizing securitized and mortgage‑related securities. Launched in August 2023, the ETF offers a 4.9% yield while maintaining a low effective duration of 0.75...
Morningstar DBRS Confirms Credit Ratings on Five Classes of Wells Fargo Commercial Mortgage Trust 2015-C27
Morningstar DBRS confirmed credit ratings on five classes of the Wells Fargo Commercial Mortgage Trust 2015‑C27, assigning B (sf) to Class C and C (sf) to Classes D, E, F and X‑B. The agency discontinued the rating on senior Class PEX after its repayment. Since...
Morningstar DBRS Confirms Republic of Finland at AA (High), Stable Trend
Morningstar DBRS confirmed that the Republic of Finland’s long‑term foreign and local currency sovereign ratings remain at AA (high), while its short‑term foreign and local ratings stay at R‑1 (high). All four ratings were reaffirmed on 20 March 2026 with a Stable...
Treasury Yields Snapshot: March 20, 2026
Treasury yields climbed on March 20, 2026, with the 10‑year note reaching 4.39% and the 2‑year at 3.88%, the highest levels since July 2025. The 10‑2 spread turned negative in early September 2024 and stayed inverted until early September 2024, reviving its reputation as a...
Markets Raise Bets on Bank of Canada Hikes as Oil Fears Mount
Markets are pricing a more aggressive Bank of Canada tightening path, with traders betting on a cumulative 75 basis‑point increase by 2026 and a 25‑basis‑point hike as early as July. The central bank held its policy rate at 2.25% and...
Why This Corner of the Muni Market Shouldn't Be Overlooked, According to Nuveen
Nuveen highlights housing municipal bonds as an overlooked segment delivering attractive yields amid rising affordable‑housing demand. Issuance of housing munis has tripled since 2016, now representing about 7% of the $4.4 trillion municipal market, and 10‑year bonds yield roughly 60 basis...
Credit Market Risks: What the Euro Credit Team Is Watching Now
Rik den Hartog, Co‑Head of Euro Credit at Loomis Sayles, outlined the team’s current focus on three credit market stressors: tightening supply dynamics, rising M&A‑driven leverage, and heightened rate volatility. He noted that constrained issuance is compressing liquidity, while deal‑making...
How Active ETFs Brought Muni Bonds Investing to Life
Active municipal‑bond ETFs have transformed a traditionally static fixed‑income segment by pairing tax‑exempt muni exposure with the liquidity and transparency of the ETF structure. The 2019 ETF rule spurred a wave of product innovation, allowing active managers to dynamically adjust...
Credit Shifting Back in Buyside Focus as Federal Stimulus Dries Up
Municipal bond investors enjoyed credit stability from roughly $4.6 trillion of pandemic stimulus, but the federal windfall is ending, reviving credit concerns. Panelists at the Bond Dealers of America conference warned that tighter spreads will likely widen as states confront fiscal...
Something Of Note: Nexstar Bond Offering Surpasses $5 Billion
Nexstar Media Group announced a senior secured note offering exceeding $5 billion, aimed at financing its $6.2 billion acquisition of the former Gannett assets. The move follows Nexstar’s effective takeover of TEGNA and the conversion of TEGNA shares into Nexstar’s “NXST” ticker....
California School District Says Taxpayers Win with Shorter Bond Terms
San Juan Unified School District has saved roughly $636 million in interest by issuing general‑obligation bonds with an average maturity of 17.23 years, far shorter than the typical 30‑year term used by most districts. The shorter‑term structure lowered the repayment ratio from...
Borrowing Costs Soar to Post-Financial Crisis High in Blow to Reeves
UK government borrowing costs have surged, with the ten‑year gilt yield topping 4.9%, the highest level since the 2008 financial crisis. The rise inflates debt‑service obligations, pushing projected interest payments toward £110 billion this year and eroding the fiscal headroom Labour...
Conditions for Call Satisfied
Småkraft AS announced that it has exercised the call option on its SMAKR02 ESG bond series and will redeem all outstanding notes. The redemption follows a refinancing under an amended and restated senior secured facilities agreement. All contractual conditions for...