Sage Advice Quarterly Market Review 1Q2006

Bonds were weaker in the first quarter, as strong economic data and two more interest rate hikes pushed yields higher across the entire yield curve. All segments of the domestic bond market reported negative absolute returns, with the broad market, as represented by the Lehman Aggregate index, earning a -0.65% return for the quarter. Securitized fixed income, including MBS, ABS and CMBS fared the best for the quarter, while treasuries saw the worst relative returns.