Movers to Watch in Fixed Income as Tech Leads Equity Euphoria

Cooper Howard expects the Fed to remain on hold due to labor market stabilization, sees upside risk for longer-term yields from stable growth and inflation, finds municipal bonds attractive for taxable high-bracket investors, and identifies the Iran situation and oil prices as the biggest variable for his outlook.

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Asset Manager $890.00B
Cooper Howard 8.0

Movers to Watch in Fixed Income as Tech Leads Equity Euphoria

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Howard links oil prices to inflation and yields, suggesting continued conflict in Iran could keep oil prices elevated, supporting higher yields.

yields

Howard states there might be a little bit more upside on longer term yields due to stable growth and higher inflation, and that the Iran situation could increase yields.

Sam

Asks about the labor data week and the Fed's focus on inflation, noting Dr. Yardeni's outlier view of a July rate cut.
Cooper Howard

Expects labor market stabilization, which likely keeps the Fed on hold for an extended period, with potential upside for longer-term yields due to stable growth and higher inflation.
Sam

Notes Howard recommends slightly below benchmark duration due to rising rate risk, and asks about attractive fixed income opportunities, specifically muni bonds.
Cooper Howard

Finds municipal bonds attractive for taxable accounts in higher tax brackets, citing after-tax yields and sustained credit quality despite some slowdown.
Sam

Asks for the biggest variable that could shift Howard's market outlook heading into summer.
Cooper Howard

The outlook for inflation and the situation in Iran are the biggest variables; continued conflict could put a floor on or increase longer-term yields.

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