Andres Victorero The above is Briefing.com’s weekly economic data table. April ’24 PPI and April ’24 CPI are due out Tuesday, May 14th, and Wednesday, May 15th, respectively. Shelter or OER (owners’ equivalent rent) has a significant influence on the CPI given its weight (roughly 30% of the inflation gauge) and then add in auto…
Yauhen Akulich/iStock via Getty Images In the context of where Treasury rates have been in the last fifteen years, the current >4.5% for longer-duration bonds might seem attractive enough to lock in via a vehicle like the SPDR Portfolio Long Term Treasury ETF (NYSEARCA:SPTL). But unlike individual bonds that can be held to maturity and…
hyejin kang/iStock via Getty Images The Short Duration Income Fund’s Institutional Class returned +1.16% in the first quarter compared to a +0.45% return for the Bloomberg U.S. Aggregate 1-3 Year Index. For the one-year period ended March 31, 2024, the Fund’s Institutional Class returned +5.46% compared to a +3.56% return for the index. Given the…
SARINYAPINNGAM Vanguard Long-Term Treasury Index Fund ETF Shares (NASDAQ:VGLT) is an ideal way to buy longer duration U.S. Treasury Bonds and lock in a yield of about 4.5% (SEC 30-day yield). This yield is close to what money market funds currently offer, but investors who remain in money market funds are likely to see yields…
tum3123 We anticipate a strong 2024 for emerging markets (EM) debt on the back of a significant improvement in the global macro backdrop. While it appears likely that the global economy will continue to gradually decelerate, we believe growth should remain close to its long-term potential. In such an environment, central banks in advanced economies…
Steve Dunning/iStock via Getty Images Thesis The SPDR Portfolio Long Term Corporate Bond ETF (NYSEARCA:SPLB) is a fixed income exchange traded fund. The vehicle focuses on investment grade corporate bonds, and represents an alternative to the much better known iShares iBoxx Investment Grade Corporate Bond ETF (LQD). LQD has an AUM of $32 billion versus…
tadamichi Investing in fixed-income securities, particularly corporate bonds, is an essential part of diversifying one’s investment portfolio. And it becomes a lot easier when the Fed isn’t raising rates. That’s one reason the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) is worth a look. IGIB is an exchange-traded fund that primarily invests in…
wsmahar Amid heightened supply concerns at the long end, the inverted Treasury yield curve has begun to ‘dis-invert’ in recent weeks, moving ten and thirty-year yields closer toward the >5% offered by shorter duration Treasury bills (T-bills). Yet, the front end still has good demand support from foreign inflows (net purchasers of U.S. debt over…
Andrii Yalanskyi The Invesco Preferred ETF (NYSEARCA:PGX) is a primarily financial exchange-traded fund, or ETF, exposed to preferred shares. Duration is a consideration with preferred share ETFs, which means the situation with rates and their likely evolution will be critical. We think that long-term interest rates could remain elevated to a degree where current preferred…
Olivier Le Moal By Kevin Flanagan Throughout the course of the current Federal Reserve rate hike cycle, and the attendant increase in the U.S. Treasury (UST) 10-Year yield, I periodically get asked whether it is time to go long on duration. My answer has been a very consistent one: I’d rather be late than early…