angle-left null Groundhog Day
Market Observations

Groundhog Day

White Paper Market Observations Active Fixed Income
February 2018
Groundhog Day

Authors and Contributors

Active Fixed Income-Investment Committee

Active Fixed Income-Investment Committee

The monthly formal review of portfolio strategy by the Active Fixed Income Investment Committee typically kicks off the first Friday of the month, as the release of the US employment situation sometimes materially influences our economic outlook. Proper and fitting that payrolls printed on February 2nd, Groundhog Day, because our initial reaction was "Didn’t we just do this?" Net employment gains in January were a touch stronger than expected, but the unemployment and participation rates were in line. The growth of average hourly earnings came in on the high side of expectations but meshed with our view that building cost pressures would put Fed tightening more meaningfully into play (with four moves in 2018 in the AMNA forecast) than market participants expected.

On January 31, 2018, The Boston Company and Standish merged into Mellon Capital to form a combined entity, BNY Mellon Asset Management North America Corporation. Effective January 2, 2019, this entity was renamed Mellon Investments Corporation.