Treasuries have been witnessing strong momentum in recent weeks, buoyed by Fed rate cut speculations. The latest inflation data signals confirmed bets that the Fed will cut rates next week, pushing up Treasury ETFs to new highs. Notably, the 10-year yields dropped to a 30-month low of 6.82%, while 2-year yields are hovering near this year’s low of 3.67%.
While the Treasury rally has been broad-based across various maturities, we have highlighted five from different ends of the yield curve that scaled to new highs in the latest trading session. These are iShares U.S. Treasury Bond ETF GOVT, iShares 20+ Year Treasury Bond ETF TLT, iShares 10-20 Year Treasury Bond ETF TLH, iShares 7-10 Year Treasury Bond ETF IEF and Schwab Short-Term U.S. Treasury ETF SCHO.
Expectations of rate cuts have been bolstered by continued signs of cooling inflation. The Consumer Price Index rose 2.5% year over year in August, down from the annual rise of 2.9%…
