Volatile Bond Market Signaling Changes to Economy

Bond Market Signaling Changes

April 5, 2023
Savvy investors are watching the bond market for indications of change to economy, interest rates and recession.

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After you listen

The traditionally sleepy bond market has been acting weird lately, with unusual volatility that is sending signals about the broader markets and the economy. Collin Martin, director and fixed income strategist at the Schwab Center for Financial Research, joins host Mike Townsend to discuss how to assess what’s going on in the bond market and its implications for all investors. He discusses changes in the yield curve, what to expect from the Fed on interest rates, the impact the fight over the debt ceiling may have on the bond market, and how changes in interest rates are hurting cash-strapped companies. Collin also shares his thoughts on risks to bond investing, where the opportunities might be, and how investors can make smart choices.

In addition, Mike looks at four key takeaways from last week’s congressional hearings on the recent bank failures, including bipartisan support for new regulations on mid-size banks, possible increases to FDIC insurance levels, and tougher punishments for mismanagement by bank executives. He also provides an update on some movement in the standoff in Washington over raising the debt ceiling.

WashingtonWise is an original podcast for investors from Charles Schwab.

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