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When the Rate Spike is Real

TREASURIES LOG THE WORST QUARTER SINCE 1980


The first quarter was largely a continuation of the recovery from the March 2020 lows for many asset classes. The S&P 500 was up 6.17%. The Nasdaq lagged, but was still up 2.96%. The more cyclical plays were up substantially more – the Russell 2000 increased another 12.69% and the Dow registered an 8.29% gain. Commodities were broadly higher as the reflation trade remained fully intact. Perhaps most notable was the acceleration of the sell-off in U.S. Treasuries which logged their worst performance since 1980! Most of the pain was felt on the long-end of the curve as the curve steepened markedly.


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