August 2021

U.S. equity markets ended July just a few points shy of their all-time highs, despite continued uncertainty around the pace of future inflation and renewed fears over COVID-19, as the delta variant spiked U.S. infections to their highest levels in months. These concerns manifested themselves in U.S. bond markets in the form of lower interest rates, with the yield on the 10-year treasury note sinking below 1.20% intra-month. This benefitted U.S. investment grade bond investors who experienced their best monthly return of 2021, gaining 1.12% in July.