|Bid||83.44 x 1000|
|Ask||83.98 x 600|
|Day's Range||83.37 - 83.47|
|52 Week Range||83.37 - 84.72|
|PE Ratio (TTM)||96.13|
|Expense Ratio (net)||0.15%|
The recent rout in the equity market was fueled by concerns over rising interest rates, which could increase costs for the industry. Investor anxiety about rising rates was triggered by comments from San Francisco Fed president John Williams on Friday, February 2. During his speech, Williams said he envisioned three or four hikes this year, and investor anxiety escalated further after the non-farm payrolls report indicated impressive job gains in January.
The US bond market’s (BND) troubles escalated last week as inflation expectations continued to rise. The first reason was the January FOMC (Federal Open Market Committee) meeting. The Fed left interest rates unchanged at that meeting but changed its outlook on inflation, saying that inflation (TIP) could pick up and stay near the 2% target.
What Boosted the Leading Economic Index in 2017? The Conference Board LEI (Leading Economic Index) is expected to use only forward-looking indicators in its economic model, but there’s one exception to this condition. The consumer expectation for business conditions is derived using expectations, rather than any economic indicator.
The reopening of the US government on Tuesday, hawkish comments from the central banks of Europe and Japan, and President Trump’s “America is open for business” speech at the World Economic Conference in Davos, Switzerland, had little impact on the bond market. According to the latest COT (Commitment of Traders) report released on January 26 by the CFTC (Chicago Futures Trading Commission), speculators increased their short positions on the ten-year bond with net short positions increasing from 89,259 contracts to 117,877 contracts. The core PCE (personal consumption expenditures) inflation data could be import since the Fed prefers this measure of inflation when making interest rate decisions.
Legendary value investor Bill Miller shared his views on the bond market (BND), equity market (SPY) (SPX-INDEX), and bitcoin in a letter on January 23, 2018. Bill Miller is the chair of Miller Value Partners, which he founded in 2016. Before that, he was the chair and chief investment officer at Legg Mason Capital Management for 35 years.
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.
Are We Heading toward a Government Shutdown? The debt ceiling is a limit set by US Congress on how much debt the US federal government can carry at any given time. The first known creation of debt ceiling dates to 1917, when the US Treasury Department was allowed to issue bonds to fund expenses during World War I. In 1974, through the Budget Control Act, the current budget process came into effect.
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.
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 Conference Board LCI (Leading Credit Index), a constituent in the LEI (Leading Economic Index), is published every month and tracks credit conditions in the US economy by following changes in…
The US FOMC December meeting minutes and the December employment data are key economic data releases that could impact markets this week.
Besides the slump of the US dollar during 2017, the other most important and most talked-about indicator is the US interest rate.
All four precious metals had an up day on December 20, 2017. Gold increased 0.43% on the day and closed at $1,267.80 per ounce.
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.
Gross believes that in return for cost of carry, if investors get risk-adjusted returns that will be unfruitful compared to the benchmark, they could shift their holdings to other asset classes.
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.
There are multiple factors that can affect the shape of yield curves. Bonds (BND) with different maturities react differently to changes in economic conditions and expectations. For example, when the US ...