Weekly Commentary: Trimming our Treasury underweight

We reduce our underweight of U.S. Treasuries after the surprising yield surge this month while still seeing the direction of travel for yields as higher. Bond yields hit highs and stocks fell last week. We view the yield surge as a reallocation away from government bonds and not necessarily bad for equities. The Fed is meeting this week amid market expectations of aggressive tightening later this year. More than one-fifth of S&P 500 companies is reporting results.