April 2021 – Monthly Commentary

After three consecutive months of rising 10-year interest rates, the benchmark note yield drifted lower in April ending the month at 1.62%.  To put that into perspective, the 10-year rate bottomed last summer at 0.50%.   The move higher has been driven by the easing of COVID-related restrictions, the resultant strong rebound in economic activity, excessively easy monetary policy and the concern that the fiscal stimulus passed by Washington will result in higher inflation.