104.05 0.00 (0.00%)
After hours: 4:44PM EST
|Bid||102.40 x 100|
|Ask||104.30 x 100|
|Day's Range||103.90 - 104.11|
|52 Week Range||103.67 - 108.81|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
The US bond (BND) markets remained under pressure and closed lower for the week ended January 19. At the beginning of the week, a news article about China planning to cut down its purchases of US Treasuries triggered an initial sell-off. The US Treasury is not able to issue any more debt until the debt ceiling is raised, which could increase the volatility in the bond markets.
The key reason for the bond market sell-off was the fear that inflation is set to increase in the months ahead. According to data reported on January 12, the consumer price index (or CPI) rose 0.1%, bringing the year-over-year inflation figure to 2.1%. This rise in inflation could keep rate hike expectations elevated, leading to higher yields and lower bond prices.
On January 10, 2018, Bloomberg News broke a story that the Chinese government could be planning to slow down its purchases of US government debt (GOVT). The sudden spike in yields highlighted the risks that are faced by the US debt (BND) markets if its largest customer, China (FXI), changes its policy. The U.S. Treasury issues Treasury securities to borrow money from investors and uses it to fund the economy.
Treasury yields are rising and bond-related exchange traded funds are falling after the Bank of Japan revealed its intention to scale back its monthly bond purchases Tuesday and Chinese officials recommended ...
The troubles surrounding a flattening yield curve extended into the new year with the spread between the US ten-year and two-year Treasuries narrowing to a level last seen before the financial crisis of 2008. A flattening yield curve, if progress could lead to a yield curve inversion, could be a signal for a future recession. The reason for the yields falling lower was the lower level of inflation expectations.
The US FOMC December meeting minutes and the December employment data are key economic data releases that could impact markets this week.
The Fed rolled out another rate hike at its final meeting of 2017. The target range for the federal funds rate was increased by 0.25% to 1.25%–1.50%, and the Fed has…
Besides the slump of the US dollar during 2017, the other most important and most talked-about indicator is the US interest rate.
Precious metals and miners saw some relief on December 13 after the Fed raised rates as expected. Sibanye Gold (SBGL), Aurico Gold (AUQ), and Goldcorp (GG) rose 3.5%, 3.6%, and 5.8%, respectively.
Gold, silver, and platinum all had a down day on Tuesday, December 13, mainly due to speculations over the Federal Reserve's pending interest rate decision.
Although the US dollar has been the most important element contributing to changes in precious metals, the upcoming December meeting of the Federal Reserve has taken all of investors' attention.
Besides the rate movements, investors are also watching the upcoming US tax plan. It will have a significant impact on the US dollar.
Precious metal market participants will be closely watching the economic numbers that come out of the US, especially those that give an indication of the country's inflation level.
Market participants were eyeing the Fed's meeting minutes that came out on Wednesday, November 22, 2017. Precious metals have a negative relationship to interest rates.
The November Conference Board report, which takes October data into account, reported the credit spread at ~1.2—an improvement from the September reading of ~1.1.