Fixed income was broadly lower over the month, as both short-term and long-term yields rose slightly over the period. Inflation expectations moved higher, pushing up long-term yields. In addition, investors started to shift back into risky assets during the month, reducing demand for longer-term treasuries. High-yield bonds posted a positive return in April, as high-yield spreads narrowed slightly.
On a year-to-date basis, bonds remain in negative territory. However, while rising rates have weighed on performance in the short-term, longer-term returns should benefit from the increased yield on fixed income securities.
Plante Moran Financial Advisors (PMFA) publishes this update to convey general information about market conditions and not for the purpose of providing investment advice. You should consult a representative from PMFA for investment advice regarding your own situation. The information provided in this update is based on information believed to be reliable at the time it was issued. Any analysis non-factual in nature constitutes only current opinions, which are subject to change.