Fixed Income (July)
– A favorable technical backdrop coupled with less concern over tax policy buoyed the muni market.
+ It was a negative month for Core Bonds. Interest rates moved higher as economic data came in better than expected, inflation signals showed signs of creeping higher and the Federal Reserve held its target rate steady at the July meeting.
+ High yield bonds fared better. Less sensitivity to interest rates, coupled with a resilient fundamental backdrop and strong demand, helped fuel the asset class.