22.54 0.00 (0.00%)
After hours: 4:52PM EDT
|Bid||0.00 x 1000|
|Ask||0.00 x 27000|
|Day's Range||22.52 - 22.63|
|52 Week Range||21.58 - 23.81|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.92%|
An inverted yield curve, in which short-term yields (SHY) are higher than long-term yields (TLT), is considered as a warning sign for a future recession. The LEI’s economic model uses the yield spread between the ten-year Treasury bond (IEF) and the federal funds rate (TBF) as one of the components. The May LEI report indicated that this yield spread increased from ~1.2 in April to ~1.3 in May. The use of the term “symmetric” along with the inflation target in the May FOMC meeting minutes led to the increase of yield spreads in May.
The US bond markets remained under selling pressure as bond yields, especially at the short end of the curve, continued to shoot up, while the long-term yields remained subdued. The US Fed through its May post-meeting statement said that inflation would reach the 2% target soon, which was interpreted as a signal for a faster pace of rate hikes. An inverted yield curve, where short-term (SHY) yields are higher than long-term yields (TLT) is considered a warning sign for future recessions, and thus the yield spread has a place in the leading economic index.
Yields on benchmark Treasuries have increased this year as market observers anticipate further monetary policy tightening out of the Federal Reserve. Nevertheless, fixed-income investors have a number ...
Rising yields has resulted in an opportune moment for bond investors to capitalize on beaten-down bond prices in the form of inverse or leveraged inverse ETFs.
Foreign buyers are just not as enamored with U.S. Treasuries as they use to be. The diminished demand could push bond yields higher and weigh on Treasury bonds, along with related exchange traded funds. ...
What Do March Leading Indicators Signal for the US Economy? The US bond markets were back in focus as the chatter about the yield curve flattening has grown louder in recent weeks. The decision of the US FOMC during its March meeting to increase the Fed funds rate by 0.25% had an uneven impact on the yield curve.
As investors anticipate rising interest rates ahead, investors may look to various ETF strategies that are designed for this kind of environment. The economic expansion is aging with many signs that are ...
Financial markets have witnessed an abrupt change in their approach to bond markets over the past two months. Up until the end of 2017, markets were not convinced that inflation could rise according to the Fed’s expectations, and so long-term rates (TLT) did not rise in tandem with short-term rates (SHY), leading the yield curve to flatten. Then the employment report for January indicated that worker wages had increased more than expected, which allowed the chance for inflation to rise.
Growing inflationary expectations and a booming economy have led to an uptrend in Treasury yields. It is unpopular and illiquid with AUM of $69.4 million and average daily volume of about 37,000 shares.
What Boosted the Leading Economic Index in 2017? In its December meeting, the US Federal Reserve increased the federal funds rate by 0.25%, just as markets expected. This led to the narrowing of credit spreads between long-term and short-term yields, resulting in a flattening yield curve.
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…
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.
At the last FOMC (Federal Open Market Committee) meeting on September 20, 2017, Fed members decided to initiate a balance sheet normalization process starting in October.
The FOMC’s (Federal Open Market Committee) meeting on September 20 changed the outlook for bond markets (BND). It suggested that the Fed could be looking at another rate hike by…
Fears of flattening yield curves and rising interest rates have completely vanished in recent weeks. The FOMC’s (Federal Open Market Committee) July meeting statement confirmed the concerns about lagging ...
ProShares, a premier provider of ETFs, announced today the launch of ProShares Equities for Rising Rates ETF , the first U.S. equity ETF specifically designed to outperform traditional large-cap indexes, such as the S&P 500, in a rising interest rate environment.