Historically the United States dollar strengthens when U.S. Treasury yields rise. But the reverse happened in April after the White House announced widespread tariffs.
Recession risk remains elevated, likely only receding with a fuller "pivot" in tariff-related uncertainty. While every recession is unique, history can provide a guide.
Recent volatility has pushed yields to historically high levels, potentially creating opportunities in municipal bonds, especially for higher-net-worth investors.
Theoretical forecasts and earnings announcements may provide initial insights as to the impact of current tariff proposals, although estimates may be imprecise.
Markets were rattled by tariff announcements in early April. Here are three takeaways for investors considering preferred securities, investment-grade and high-yield corporate bonds.
Markets have had a wild ride these past couple of weeks, alongside chaotic tariff-related news, with volatility (and its policy triggers) most elevated in the bond market.
Find Market Commentary content
Why Is the U.S. Dollar Declining?
Dominoes: Recessions' History Guide
The State of Rates and the Bond Market During Uncertainty
Why the Tariff Rollout Spooked the Muni Market
Early Impacts of the Trade War
Weathering Market Volatility: Can Dividends Help?
Market Volatility and Corporate Bonds: 3 Takeaways
Upside Down(side): Markets' Wild Rides
Navigating the Markets: Tariffs and Trade