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U.S. Bond Market Delivers Mixed Results So Far In 2021

September 7, 2021

Uncertainty remains elevated for the economy, inflation, monetary policy, and the path of the pandemic as the final quarter of 2021 approaches. As investors struggle to get a handle on how the final run of 2021 plays out, the US bond market has delivered a mixed performance year to date, based on a set of ETFs through Sep. 3.

Several narratives are roiling expectations. On the one hand, the risk of slower growth and disinflation continues to churn, driven by a rebound in the pandemic, the fading of federal stimulus support, and other factors. Meantime, investors worry that the recent jump in inflation will persist — an outlook that the Federal Reserve says is a low-risk event.

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