Lower for Longer, or Negative Forever?

August 13, 2019 | Ben Mohr, CFA, Director of Fixed Income

With Trump’s surprise announcement of additional tariffs at the beginning of this month — a day after the Fed’s rate cut — the yield curve continued its free fall and flattening that began in earnest at the beginning of 4Q18’s dislocation and the gradual heating-up of the tariff war. Sunday’s Argentine Presidential primary election surprise, where pro-free markets incumbent Macri lost to populist duo Fernandez/Kirchner by a wider than expected margin, further exacerbated that trend.

In this newsletter, we examine the driving forces behind this persistent yield curve decline and flattening and potential remedies to the “lower for longer” norm.

Read > Lower for Longer, or Negative Forever?

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Ben Mohr, CFA
Director of Fixed Income

Get to Know Ben

Related Content

10.16.2019

Central Banks Fight the Threat of Recession

On September 12th, the European Central Bank (“ECB”) — headed by departing President Mario Draghi — passed a major stimulus…

10.11.2019

2019 Investment Symposium Presentations

The six flash talks presented by our research team at Marquette’s 2019 Investment Symposium on October 4th…

10.07.2019

3Q 2019 Market Briefing

Live Webinar – Thursday, October 24, 2019 – 1:00-2:00 PM CT

09.17.2019

Attack on Saudi Oil and Market Implications

Over the weekend, half of Saudi Arabia’s oil production stopped due to a drone attack on the country’s major Saudi…

08.30.2019

Investing 101 Video Series

Our Investing 101 video series covers the fundamentals of investing. This series aims to create a knowledge base for trustees,…

08.16.2019

All is Not Lost for 2019

Given this week’s volatility driven by (brief) yield curve inversion, the ongoing U.S.-China trade dispute, disappointing economic data from Germany,…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >