January 6, 2015 - Key Takeaways

For just the second time in the last 30 calendar years, short-term 2-year Treasury yields increased while longer-term 10- and 30-year Treasury yields fell.

One factor from 2014 that remains in place at the start of 2015 is the lure of Treasury yields on a global basis.

Although bonds may continue to be supported by lower oil prices and European growth fears, we believe U.S. economic growth and the start of Fed rate hikes will translate to a lower-return environment than investors experienced in 2014.

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