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Ever since the Fed lowered the Fed Funds rate in September, interest rates in general have been rising. One explanation might be that the bond market had gotten out ahead of the Fed having seen the 10- Year Treasury Note falling to near 3.60% while the Fed Funds rate was still well over 5%. But strength in the economy has investors wondering if the Fed will actually lower rates over time as aggressively as expected. Another possibility is that the yield curve is normalizing. Most of the time short term rates are lower than long term rates. Perhaps we are seeing a process that will end up with the Fed lowering short term rates while longer term rates move higher steepening the yield curve. There is also a more concerning reason that interest rates are moving higher while the Fed is easing. MONTHLY COMMENTARY
For our daily commentary and all disclosures, visit www.chjwealthmanagement.com 10200 Grogan’s Mill Road, Suite 340 • 281-298-2700
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THE WOODLANDS EDITION
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