Treasury Bonds Pace ETFs on Weak Jobs as Gold Miners Stumble

ETF Trends

SPDR S&P 500 (SPY) was on track for a weekly decline of more than 1% after setting new all-time highs as U.S. Treasury bond ETFs led the way on safe-haven buying and a gloomy March jobs report.

Among the major U.S. equity indices, the S&P 500 was set for a weekly loss of 1.3% in afternoon trading Friday, the Dow shed 0.3% and the Nasdaq Composite tumbled 2.2%. [Treasury ETFs Continue Screaming Higher After Dismal Jobs Report]

“This report is a huge disappointment,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told Bloomberg News. “This will spook the market and it obviously means that the Fed will remain on vigil with regards to the highly accommodative monetary policy.”

The top three unleveraged ETFs this week were PIMCO 25+ Year Zero Coupon U.S. Treasury Index (ZROZ), Vanguard Extended Duration Treasury Index (EDV) and iShares Barclays 20+ Year Treasury Bond Fund (TLT) with gains of at least 4%.

The bottom three unleveraged ETFs this week were U.S. Gasoline Fund (UGA), Market Vectors Junior Gold Miners (GDXJ) and Market Vectors Gold Miners (GDX) with setbacks of 7% or more. [Gold Miners Continue to Fall Harder than Bullion]

Next week’s economic data features reports on wholesale trade, the federal budget, import and export prices, producer prices, retail sales, consumer sentiment and business inventories. Also, the minutes from the latest Federal Reserve meeting are scheduled to be released on Wednesday.

Full disclosure: Tom Lydon’s clients own TLT and SPY.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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