Weekly Market Update

Treasury yields trended slightly lower last week, as investors digested more commentary from Federal Reserve (Fed) Chairman Bernanke and other Fed speakers. Bernanke reiterated the Fed’s commitment to purchasing bonds as necessary moving forward.

Read more now in our Weekly Market Update.

Treasuries rallied at the end of last week after the 10-year touched a high of 2.73 percent. Federal Reserve Chairman Ben Bernanke’s speech on Wednesday calmed markets and gave investors more confidence that the tapering of asset purchases was unlikely to occur during 2013. Read More Now.

The yield on the 10-year Treasury was as high as 2.73 percent on Monday morning, after a volatile Friday, when it ended the day at 2.74 percent.

Trading volume may have been low during the holiday-shortened week, but the equity markets made a strong push higher on Friday after a better-than-expected payroll report. The S&P 500 climbed 1.63 percent, but the small-cap Russell 2000 Index was the strongest performer with a gain of 2.87 percent.

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While many agree that Treasury yields present a decent opportunity at current levels, there’s no lack of volatility in the market. After bouncing as high as 2.64 percent last Monday, yields on the 10-year Treasury fell as low as 2.45 percent late in the week. The 10-year begins what could be a slower holiday week slightly above 2.50 percent.

Read our Weekly Market Summary.

NEW: Brad McMillan, vice president, chief investment officer of the Commonwealth Financial Network, talks with Maria Considine King, vice president of practice management, about the Fed’s announcement of a reduction in stimulus. Brad also offers updates on China and Europe, as well as his thoughts on what to look for in the financial markets going forward. Click for the video.

The yield on the 10-year Treasury was as high as 2.63 percent early Monday morning. This move seems to be in reaction to last Wednesday’s Federal Open Market Committee (FOMC) meeting, during which Chairman Bernanke gave us more clarity on the Fed’s exit plan. Read more now in our Weekly Market Summary.

Little movement is expected in the Treasury market to start off the week, as investors wait for notes from the Federal Open Market Committee (FOMC) meeting this Tuesday and Wednesday. The 10-year Treasury stood at 2.12 percent early Monday morning.

Given volatility in the markets and a slowing economy, many expect Federal Reserve Chairman Ben Bernanke to confirm a continued commitment to quantitative easing. Read more now .

Volatility continues to be the main theme in the Treasury space. In the past week, the yield on the 10-year Treasury has moved
from 2.17 percent, down to 2 percent late Friday, and back up to 2.17 percent early Monday morning. Read more in our Weekly Market Summary.

Treasury yields started this week near where they had ended the last, with the 10-year hovering around the 2.17-percent level. It
seems that bond investors are waiting for another event or announcement to give them clarity on the direction of short-terms rates. Read more now in our Weekly Market Summary.

The yield on the 10-year Treasury remained above 2 percent early Monday morning, after being as low as 1.91 percent last Wednesday, before the Federal Open Market Committee (FOMC) minutes were released and Chairman Bernanke spoke before Congress. Read more now in our Weekly Market Summary.

After testing the 1.95-percent level before retreating to 1.86 percent last Friday, the yield on the 10-year Treasury was back up to 1.95 percent on Monday morning. This is a key number for the 10-year; should rates break on the upside, we could see yields of 2 percent or even 2.10 percent. More downside pressure is expected as we head into early summer, however.

Read this week’s Market Summary.