The Case for Short-Dated US Treasury Bonds
Also Interesting
- US macroeconomic backdrop remains healthy. US growth is robust and inflation currently hovers around the Fed’s target. With each meeting the Federal Open Market Committee (FOMC) appears more confident in its gradual rate normalisation policy.
- SPDR Bloomberg Barclays 1–3 Year U.S. Treasury Bond UCITS ETF is short in duration, which means it is less sensitive to interest rate risk during a period in the economic cycle when bond yields are forecast to rise.
- A reduction in the size of the Fed’s quantitative easing (QE) programme may also negatively impact yields, with price returns less affected at the short end of the curve.
