Northern Funds Intermediate Tax-Exempt Fund Q3 2025 Commentary
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Northern Trust Asset Management6 FollowersFollow5ShareSavePlay(6min)CommentsSummaryThe moderation in employment was sufficient to prompt the U.S. Federal Reserve's first rate cut of 2025—marking the beginning of what markets expect to be an easing cycle.Treasury yields drifted lower, with the 2-year down 11 basis points (0.11%) to 3.61% and the 10-year falling 8 basis points (0.08%) to 4.15%.Municipals finally outperformed US treasuries in the 3rd quarter after lagging the first half of the year.The supply was easily absorbed by strong demand from over $11 billion fund in-flows and record $168 billion of principal and coupon reinvestment.The Fund performed in-line with the benchmark in the quarter. Arpana Singh/iStock via Getty Images It was an atypical macro backdrop, as economic activity defied expectations for a slowdown despite clear signs of labor market deceleration. Following several upward revisions, U.S. second-quarter real GDP growth—initially reported in July—was finalized at 3.8% annualized, well above theThis article was written byNorthern Trust Asset Management6 FollowersFollowNorthern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with $1.2 trillion in assets under management as of March 31, 2024, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.
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