The bond market has made a remarkable comeback amid the recent equity market rout due to growing concern about recession fears. The anxiety has led investors to seek refuge in Treasury securities, perceived as safe-haven assets. A Bloomberg index that tracks both US government and high-quality corporate bonds has gained 2% since late July against a 6% decline for the S&P 500.
Additionally, bets that the Fed would cut interest rates in September drove Treasuries higher. While most ETFs in the Treasury space are surging, we have highlighted five that are leading the way higher in a month. These are PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF ZROZ, iShares 25+ Year Treasury STRIPS Bond ETF GOVZ, Vanguard Extended Duration Treasury ETF EDV, BondBloxx Bloomberg Twenty Year Target Duration US Treasury ETF XTWY and iShares 20+ Year Treasury Bond ETF TLT.
Traders are betting that the U.S. economy has lost steam and is on the verge of…
