|Bid||113.40 x 600|
|Ask||114.43 x 1200|
|Day's Range||113.89 - 114.28|
|52 Week Range||110.90 - 117.55|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.20%|
The government's auction of $5 billion in 30-year Treasury inflation-protected securities (TIPS) saw record demand from direct and indirect bidders, leaving dealers to take just 15.5% share. This was a record low, points out Thomas Simons of Jefferies. Aaron Kohli of BMO Capital Markets isn't a fan of these bonds and was surprised to see the strong demand.
The US unemployment rate is close to the desired 4.5% and inflation has moved closer to the Fed’s target rate of 2.0%.
Here’s a bond market conundrum that should sound somewhat familiar: Last week the Federal Reserve raised interest rates and Treasury yields fell. Investors thought the Fed would hike anyway, but they expected a dovish tone. Instead, the Fed was hawkish—indicating it would start shrinking its balance sheet sooner than expected and signaling at least three rate hikes a year for the next two years.