Dazed And Confused! Treasury Flows Show Bullish $2.5 Billion Shift to ST Sovereigns Versus S&P 500 (Credit ETFs Hammered by Record Outflows of Almost $12 Billion As Fed Worries About Inflation)

Confounded Interest ^ | 03/01/2023 | Anthony B. Sanders

[Kaiser8408a]

The Federal Reserve is dazed and confused about inflation.

As The Federal Reserve reaffirms their draining of the monetary punch bowl, we are seeing investors flock towards the bond market. Particularly the iShares Short Treasury ETF. $2.5 BILLION to be exact.

Meanwhile, credit ETFs are hammered by record outflows of almost $12 Billion.

The reason why? Inflation remains elevated which is leading The Fed to keep their foot on the monetary brake pedal.

I’m an economist.

[Kaiser8408a]

Biden and his inept administration won't fix the border, won't stop wasting money on green energy, etc.

[WildHighlander57]

Doesn’t rising interest rates do a number on bond values?

[stig]

Doesn’t rising interest rates do a number on bond values?

They are talking about a short term bond fund. If you hold to maturity you get all your money plus interest. The ETF should be relatively stable if set up properly. However the ETF is a traded security. If everyone went to dump it at the same time you could theoretically see a loss in value.

Likely they are talking about retirement funds where your choices are limited as far as investment products available. Why wouldn't you just buy your own treasuries?