Much Ado Yet Little Impact

10-year Treasury yields moved up slightly during the week as investors speculated over the continuing prospect of a trade war, tensions with Russia over Syria and the Fed’s current propensity to increase the pace of policy tightening. It appears that trade tensions are easing between the U.S. and China following conciliatory remarks from China’s president; however, traders were rattled by Trump’s comments about launching missiles at Syria. Investors must ponder the question: will tensions in the Middle East escalate into a destabilizing conflict? Lots going on this week, with little impact on interest rates.