IvelinRadkov
In the wake of the latest consumer price index report, Treasury yields have come down a bit on Thursday, placing upward support on exchange traded funds that are tied to the moves in the bond market.
On Thursday, Wall Street watched the U.S. 10-year Treasury yield (US10Y) decline by 2 basis points to 3.54%. At the same time, the shorter end U.S. 2-year Treasury yield (US2Y) has slipped by 6 basis points to 4.17%, which has a technical significance as the Treasury yield pierced below its 100-day moving average for the first time since August of 2021.
As a result to the fall in yields, bond funds across the board have tracked higher, as yields and bond prices move in opposite parallels. See a list of Treasury ETFs that are in the green: (IEI), (SHY), (GOVT), (VGSH), (VGIT), (SCHO), and (SCHR).
Aside from Treasury ETFs, prominent bond funds such as the iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) and Vanguard Total Bond Market Index Fund (NASDAQ:BND) moved up as well.
Regarding the yield curve, between the 10Y and 2Y it still remains inverted by 62 basis points.
In related inflation news, CPI figures came in as expected with core inflation easing to 5.7% in the month of December.
