What Comes Next For Bond ETFs After Yields Soar?
- Date: 30-Mar-2022
- Source: Yahoo News
- Sector:Financial Markets
- Country:Middle East
What Comes Next For Bond ETFs After Yields Soar?
Last week was one of the worst in the past few years for bond prices, sending two benchmark short- and long-dated bond ETFs to one of their best weeks for inflows in recent memory.
The yield on five-year Treasury bills rose nearly 15% last week, with the 10- and 30-year yield rising 10.7% and 4%, respectively. Those three increases bring yields to levels not seen since the spring of 2019, when the federal funds rate was at 2.4%.
Those moves have sent money to the extreme ends of the maturity curve, with the iShares 20+ Year Treasury Bond ETF (TLT) adding more than $2.6 billion and the iShares Short Treasury Bond ETF (SHV) more than $1 billion last week to top the inflows leaderboard for U.S.-listed ETFs.