Duration performed well in 2017 as the yield curve flattened. Treasury yields rose from 1.21% to 1.88% on 2‐year notes while yields dropped on 30‐year treasury bonds from 3.04% to end the year at 2.74%. The high yield sector outperformed with equities, followed by long municipals, intermediate municipals, and intermediate government and agency paper.

High yield fixed income outperformed with equities in the third quarter of 2017. Long and intermediate municipal bonds were also positive, followed by smaller gains in corporate and government paper.

The high yield fixed income sector, which is highly correlated with equities, outperformed the Merrill Lynch fixed income indices in the second quarter.

The high yield fixed income sector continued its outperformance in the first quarter of 2017. Intermediate municipal bonds, longer dated municipals, corporate bonds and treasuries/agencies all gained after a particularly volatile 4Q 2016.

Longer dated municipals, investment grade corporates, and U.S. government securities declined in the third quarter but remained positive for the year. Intermediate municipals were flat while high yield holdings continued to strengthen.

Longer fixed income outperformed the short end as the yield curve flattened in the first quarter. Treasuries and agencies had strong returns followed by a rebound in high yield and corporate debt.