2nd QUARTER FIXED INCOME

The yield on the 10-year Treasury of 2.29% at the end of June was down from 2.39% at the end of March. (Yields move inversely to prices.) Despite this slight increase in prices, bonds showed no signs of recovering from the rout experienced in the last half of 2016. The certainty of measured interest rate increases from the Federal Reserve should act to keep bond prices subdued with greater prospect in the future for decline than for increase.