Treasury ETFs Retreat as Traders Readjust to Fed s Hawkish Stance etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
“Our base case is that rates will continue to rise due to increasing growth and inflation expectations and, eventually, Federal Reserve normalization,” said Ryan Detrick, chief market strategist at LPL Financial. “We also believe if rates move too high too fast, the Fed will intervene to make sure rising rates don’t become too restrictive and disrupt equity markets or the real economy.”
While Treasury yields continued to climb, investors considered sanguine economic data out Thursday that revealed that first-time jobless claims totaled 730,000 for the week ended Feb. 20. Economists polled by Down Jones had estimated a number closer to 845,000. In addition, durable goods orders increased by 3.4% in January, compared to a Dow Jones consensus of 1.0% growth.
Ready for this week’s retirement investing pop quiz?
In what kind of bonds should you invest the fixed income portion of your portfolio if you thought that a huge economic downturn was just around the corner U.S. Treasurys or High-Grade Corporate Bonds?
The standard answer from most financial planners is the former. Their theory, which certainly is plausible, is that during economic crashes investors dump all risky assets including corporate bonds in favor of the safety of U.S. Treasurys. But few, if any, of these financial planners have actually analyzed the historical record with sufficient detail to verify this theory.