From BlackRock: As yields increase, short-maturity bond funds can offer both higher income potential and a cushion against interest rate risk. Karen Schenone explains the mechanics, in part three of her Rising Rates series.
From Invesco: A new 2-month Treasury bill (T-bill) will launch in October, according to details announced by the Treasury on Aug. 1.
From Invesco: After three years of discussion, the US Treasury appears ready to introduce a new 2-month Treasury bill (T-bill) into its auction schedule. Invesco Fixed Income believes a 2-month T-bill auction would be a positive addition to the Treasury’s current lineup and would be unlikely to create market disruption.
From Zacks: U.S. markets saw a selloff in the first quarter on apprehensions of rate hikes and trade war fears. Although the Fed forecasts two more rate hikes in 2018 after the March one, latest data released by the Labor Department has made some economists believe that this year might have four hikes in store.
From Zacks: U.S. Treasury yields have been somewhat seesawing as multiple factors are impacting the markets at the moment. Despite relatively strong economic fundamentals, trade war fears have made investors question their portfolio allocations and reallocate their assets to counter high volatility.
From BlackRock: Jeff Rosenberg zooms in on why short-term bonds are finally looking attractive again after years in the doldrums.
From BlackRock: The backup in yields has opened up opportunities for fixed income investors to add exposure to shorter maturity U.S. Treasuries. Jeff Rosenberg explains.
Investors looking for ETFs with negative momentum should begin to consider the iShares 1-3 Year Treasury Bond ETF (SHY). This product just hit a new 52-week low of $84.02 today, and is now down 0.83% from its 52-week high price of $84.72 per share.
From Franklin Templeton Investments: Even though they may not know it, many global consumers have at least one loan tied to the London Interbank Offered Rate (LIBOR).
From WisdomTree: Since Election Day, the focus in the U.S. Treasury (UST) market has been essentially domestic-driven.
From WisdomTree: We’re six months into 2017, and investors have begun asking themselves, did rates peak yet again or will there be another leg to the upside in the second half of the year?
Yesterday’s call activity in an intermediate duration fund IEF (iShares 7-10 Year Treasury Bond, Expense Ratio 0.15%) sparked some reader inquiries in the Fixed Income ETF space in general, so we will stay on the topic in today’s piece.
From BlackRock: We see Federal Reserve rate increase expectations returning as a bond market driver, justifying our cautious stance on sovereign debt. Richard Turnill explains, with the help of this week’s chart.
In perhaps the most anti-climactic interest rate hike in history, the Federal Reserve boosted the Fed funds rate by 25 basis points, from 0.50% to 0.75%.
From Todd Rosenbluth: After falling below 2.0% for much of 2016, the yield on the 10-year Treasury bond moved back above that perch following recent expectations that the Federal Reserve would raise rates soon, not to mention the surprise election of Trump.