EDV / How Treasury ETFs Spiked Last Week on a Drop in Yields

Vanguard Extended Duration Treasury Index Fund ETF has lost half its value since early 2020 due to rising inflation and a positive stock-bond correlat more_horizontal

The Vanguard Extended Duration Treasury ETF holds 20- to 30-year Treasury STRIPS which have an extremely high duration. After a major decline, the EDV more_horizontal

The market is pricing in a 99% chance that the Federal Reserve will not raise interest rates at its meeting this week. But that doesn't mean the U.S. more_horizontal

Billionaires have opposing views on treasuries, with Elon Musk supporting short-term treasuries and Bill Ackman betting against long-term treasuries. more_horizontal

Fitch Ratings downgraded the United States' long-term sovereign credit rating from AAA to AA+ due to expected fiscal deterioration, high debt burden, more_horizontal

Rating agency Fitch downgraded the United States to AA+ from AAA on Aug 1. more_horizontal

As investors return back to fixed income in the second half of 2023, a shift from a short-term to a long-term rate strategy could be in the making. In more_horizontal

Short-term yields are high relative to long-term inflation and economic growth outlook, but aggressive interest rate cuts are already priced into bond more_horizontal