VGLT / VGLT: Bonds Look Good As Deflation Scare Increasingly Likely

2023 has been marked by a return to bond exchange traded funds (ETFs) despite continued hawkishness by the U.S. Federal Reserve. Short-term bond funds more_horizontal

The Vanguard Long-Term Treasury Index Fund has been given a hold rating due to its low cost, high tradeability, and decent yield, despite near-term do more_horizontal

The ADP's strong jobs report pushed the benchmark yield for 10-year Treasuries over the 4% threshold. That's the highest 10-year Treasury yields have more_horizontal

For the better part of 15 years, bonds, also known as fixed income, didn't offer portfolios a great deal. With interest rates as low as they were, bon more_horizontal

Focusing on the closing prices, I believe we're in an A-B-C correction from the peak at ~109 on December 7. The daily RSI in TLT is heading towards an more_horizontal

Bond markets are set to see an additional boost as the Federal Reserve is expected to raise interest rates by at least 25 basis points next week. more_horizontal

Real-time indices of rent show it is cooling more quickly than the Fed's survey which tends to lag reality by up to 4 quarters. The Vanguard Long-Term more_horizontal

There is a growing threat of another short-term deflation scare as the money supply continues to collapse, suggesting that long-dated bonds could perf more_horizontal