TIP

Vanguard spotlights opportunities in the bond market as rates are expected to decline

Vanguard spotlights opportunities in the bond market as rates are expected to decline. Inflation has cooled to levels that would allow for the Federal Reserve to start cutting rates in 2024. The shorter end of the U.S. 2 Year Treasury yield has fallen 5 basis points to 4.37%.

Yield curve between 2s/10s comes to closest level of becoming un-inverted in 9 months

Yield curve between 2s/10s comes to closest level of becoming un-inverted in 9 months on Thursday. The inverted yield curve between the U.S. 2 Year Treasury yield and the 10 year Treasury yield reached its closest level to becoming unverted in nine months. The 2s10s curve continues to steepen and is now 14 basis points away from un- inverting. The inversion took hold in July 2022.

Has An Age-Old Relationship Changed?

Wolfe Research suggests the 2s/10s yield curve wants to breakout

Wolfe Research suggests the 2s/10s yield curve wants to breakout. The inversion between the U.S. 2 Year Treasury yield and the US10 Year yield remains inverted but looks like it "wants to breakout (steepen)" At the moment, the inversion sits at -26 basis points and is close to being un-inverted.

Weekly Report: what happened at TIP last week (0715-0719)?

Notable ETF Outflow Detected - TIP

LTPZ: The Time Is Now (Maybe)

Treasury Inflation-Protected Securities have had mixed results due to duration weakness during a rate hike cycle. Long-duration TIPS may make sense now. PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund ETF targets long-maturity TIPS exposure. The LTPZ ETF offers a valuable hedge against inflation, but may be more volatile.

Fed rate cuts aren’t imminent as labor market data comes with caveats - Vanguard