The bond market saw the US Treasury close the quarter with unprecedented volatility, spurred by the banking crises that began on March 9th, which saw the FDIC take over both Silicon Valley Bank and the Signature Bank of New York.

Summary

The global economy is in a moderate slowdown, with financial markets being whipsawed by tensions in the banking sectors of the US and Europe in the final weeks of the quarter.

For 50 years of Cumberland’s history, we have been dealing with the subject of the nation’s debt. Our country has been in debt all its constitutional existence. Prior to the constitutional period the fledgling United States experienced its first hyperinflation with the continental dollar then…

The FOMC raised its federal funds target rate for the ninth time, to 4.75–5.0%, continuing its pattern of tightening policy rates in 25-basis-point increments. It also maintained its current policy of gradually reducing its holdings of Treasury and agency securities.

On February 16–17, the Global Interdependence Center, in partnership with University of South Florida Sarasota Manatee and the Florida West Coast Chapter of the Air Force Association, held the first in a series of four programs titled “Ukraine: One Year Later.”

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As the trifecta of the Treasury Department, Fed, and FDIC moved to contain the fallout of the failure of Silicon Valley Bank, here’s how American Banker summed things up on that fateful Sunday night:  

Blame, blame, blame — the media, Congress, and others are blaming bank supervisors, deregulation, and previous administrations in an effort to assign responsibility for the collapse and subsequent fallout from the demise of Silicon Valley Bank and Signature Bank.

The failure of Silicon Valley Bank (SVB) along with Silvergate Bank and the Signature Bank of New York has created what is possibly an inflection point in the bond markets.