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Final Trade: CCK, TLT, USD, TTE
  + stars: | 2024-04-12 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trade: CCK, TLT, USD, TTEThe final trades of the day with CNBC’s Melissa Lee and the Fast Money traders.
Persons: CNBC’s Melissa Lee Organizations: Fast Money Locations: TLT
The price of bond funds like TLT move in the opposite direction of bond yields, meaning lower prices equal higher yields. TLT 1M mountain The iShares 20+ Year Treasury ETF has fallen for eight straight trading sessions. Only two of the trading sessions have seen a decline of more than 0.5%. One of the TLT's main competitors, the Vanguard Long-Term Treasury ETF (VGLT) , also fell for eight-straight trading sessions. The iShares 1-3 Year Treasury Bond ETF (SHY) has only fallen in five of the past eight sessions, for example.
Persons: Jason Goepfert Organizations: U.S . Treasury, Treasury Bond ETF, Treasury, Federal, White Oak Consultancy
Just because the current valuation backdrop isn't as extreme as 1999-2000, we are still in a market bubble, and valuations are even more stretched today than they were at the market peaks in 2007, 1990, and 1980." Rosenberg ResearchSecond, the S&P 500 is outperforming the HYG/TLT Ratio. AdvertisementRosenberg ResearchAnd third, even tech stocks, which have been overwhelmingly supporting the S&P 500, appear to be running out of gas, Rosenberg said. The same goes for Paul Dietrich, the chief strategist at B. Riley Wealth, who says the S&P 500 could fall 49% when the current bubble pops. The bull market has thrown egg onto their faces again and again: since the October 2022 lows, the S&P 500 is up a whopping 42%.
Persons: , David Rosenberg isn't, Merrill Lynch, Rosenberg, he's, manias, HYG, Michael Hartnett, Jeremy Grantham, Paul Dietrich, Riley Wealth, Dietrich, Grantham, Carol Schleif Organizations: Service, Rosenberg Research, Business, Equity Model, Dow Jones, Dow Transports Index, Bank of America's, Bank, America, BMO Family Office
Long-term yields might be the best bond investment this year, according to one exchange-traded fund expert. "The iShares 20-year Treasury ETF (TLT ) will get the biggest bang for its buck [and] some of the intermediate-term products like the Vanguard Intermediate-Term Corp Bond (VCIT ) will get some bang for the buck," VettaFi's Todd Rosenbluth told CNBC's "ETF Edge" on Monday. Rosenbluth added that while the short-term products were very popular last year, they will "largely tread water or earn a little more than their overall income." The firm's head of research reasons that if the Federal Reserve cuts interest rates more than expected then investors should stay in longer-term products to benefit. "We saw a lot of money start to move out of the short end of the curve into intermediate duration," said Slavin, the company's global head of ETFs.
Persons: VettaFi's Todd Rosenbluth, CNBC's, Rosenbluth, BNY Mellon's Benjamin Slavin Organizations: Treasury, Corp, Federal Reserve
"Bond fund / ETF flows tend to follow returns with about a month lag. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is the top bond ETF by inflows with more than $4.5 billion month to date, according to FactSet. Another notable fund is the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) , which has brought in more than $2 billion. "People have definitely been allocating to investment grade. How fixed income investors react to expected rate cuts from the Federal Reserve is a key question in 2024.
Persons: Yuri Seliger, Bond, Seliger, Stephen Laipply, Laipply Organizations: Bank of, Corporate, Federal Locations: LQD, BlackRock
The 10-year Treasury yield started the new year trading around 3.8% after a steep decline in late 2023. Against this backdrop, CNBC Pro asked three strategists and money managers how they would allocate $50,000 with yields rising again. Specifically, he recommended bills with a three- to six-month maturity, which investors can gain exposure to through exchange-traded funds such as the Vanguard Short-Term Treasury ETF (VGSH) or SPDR Portfolio Short Term Treasury ETF (SPTS) . Exchange-traded funds that offer exposure to these assets include the iShares 20 Plus Year Treasury Bond ETF (TLT) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT) . Invest in dividend-growing value stocks Newton Investment Management's John Bailer recommended investors solely allocate into value stocks with sustainable and growing dividends.
Persons: Kumar, VGSH, VCIT, John Bailer, JPMorgan Chase, They've, they've, Bailer, Northrop Grumman, James Abate, Abate, Johnson, Geoff Martha, Colgate's Organizations: Treasury, Nasdaq, Dow Jones, CNBC Pro, Sri, Kumar, CNBC, AAA, Exchange, Treasury Bond ETF, Vanguard, Stock Market, U.S, Bloomberg, Newton Investment, JPMorgan Chase, JPMorgan, Northrop, Asset Management, Johnson, Colgate, Palmolive Locations: Bailer's
Investors poured cash into these fixed income ETFs in 2023
  + stars: | 2024-01-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com   time to read: +6 min
The Federal Reserve's monetary policy set the tone for the fixed income world in 2023 – right down to which exchange traded funds investors picked to take advantage of higher interest rates. Bond yields have an inverse relationship to their prices, so that when prices decline, yields rise and vice versa. The Vanguard Long-Term Treasury ETF (VGLT) was another favorite of investors, with about $7.3 billion in net flows in 2023. Indeed, those strategies proved popular with investors in 2023, as the Vanguard Total Bond Market ETF (BND) and iShares Core U.S. Aggregate Bond ETF (AGG) were ETFs with the second and third highest net flows, per Morningstar.
Persons: It's, Paul Olmsted, Matthew Bartolini, Olmsted, Morningstar, , it's, BND, AGG Organizations: Investors, Bloomberg Finance, State Street Global Advisors, Morningstar, SPDR, SPDR Americas Research, Street Global Advisors, State, Treasury Bond ETF, Bloomberg, SGOV, SEC, Treasury, Fed, Vanguard, Bond Market, Core, Aggregate Bond Locations: SPDR Americas, Central
Final Trade: SSD, TLT, IBM & C
  + stars: | 2023-12-05 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trade: SSD, TLT, IBM & CThe final trades of the day with CNBC’s Melissa Lee and the Fast Money traders.
Persons: CNBC’s Melissa Lee Organizations: IBM, Fast Money
Zero-day commodity options have now entered the ETF space
  + stars: | 2023-12-01 | by ( Natalie Zhang | ) www.cnbc.com   time to read: +1 min
Investors can now trade commodities and a Treasury with a popular short-term options strategy. The Nasdaq recently launched five zero-day options-based exchange-traded funds: United States Oil Fund (USO) , United States Natural Gas Fund (UNG) , SPDR Gold Shares (GLD) , iShares Silver Trust (SLV) and iShares 20+ year Treasury Bond ETF (TLT) . It has taken the options market by storm. The surge in activity surrounding zero-day options has some analysts worried about a negative impact on the market. "I don't think the tools themselves are inherently breaking the market," Nadig said.
Persons: Dave Nadig, CNBC's, Nadig, it's Organizations: Treasury, Nasdaq, United States Oil Fund, United States Natural Gas Fund, Bond ETF Locations: United
2023: The year of chasing yield Investors historically chase after stock performance, but 2023 has been the year of chasing after yield performance. This year, the combined assets under management at money market funds grew to a record $6 trillion. There have been large inflows into short-term Treasury funds like the Vanguard Short-Term Treasury ETF (VGSH) and, surprisingly, even into long-term Treasury ETFs like the iShares 20+Year Treasury Bond ETF (TLT). Still, some think a large chunk of the money in short-term Treasuries and money markets is "scared money" and will be "sticky." Those institutional investors "Don't want any money in cash because it will lag behind the stock market," he told me.
Persons: Paul McCulley, they're, Mark Lehman, Eric Balchunas, Jeff Seyffart, Alec Young, Steve Sosnick, Jim Besaw, Besaw, Mike O'Rourke, JonesTrading, Matt Maley, Miller Tabak, Chris Murphy Organizations: Federal, CNBC, Citizens JMP Securities, Treasury, Treasury Bond ETF, Bloomberg, Schwab Money Fund, MapSignals, Interactive Brokers, Gentrust, UBS Locations: Susquehanna
Tax loss harvesting is a staple of year-end planning. Bonds are ripe for tax loss harvesting in the wake of the Federal Reserve's rate-hiking cycle. Consider that the longer-dated iShares 20+ Year Treasury Bond ETF (TLT) has a year-to-date total return of about -7.3%, while the shorter-term iShares Core US Aggregate Bond ETF (AGG) has a total return of roughly 0.7% in 2023, according to Morningstar. "Tax loss harvesting is a silver lining for some of the pain they've been feeling the last couple of years." Bonds and the wash sale rule To benefit from tax loss harvesting, investors must avoid violating the wash sale rule .
Persons: Bonds, Morningstar, Kristy Akullian, Jeffrey Levine, St . Louis, Levine, Jordan Naffa, Naffa, VGSH, Lisa, Kirchenbauer Organizations: Treasury Bond ETF, Bond, BlackRock, Internal, Strategic Wealth, Arista Wealth Management, Treasury, SEC, VGIT, Omega Wealth Management Locations: St ., Las Vegas, Arlington , Va
Technical strategist Katie Stockton said that recent stock gains have been "explosive." But falling bond yields should continue to provide a boost to stocks if the pullback persists. The surge in equities, Wilson explained, is mostly a consequence of falling bond yields. Key government bond yields have pulled back sharply from 16-year highs in recent weeks. She said signs flashing in the TLT Treasury ETF point to an extended period of bond yields correcting from recent highs.
Persons: Katie Stockton, Stockton, , November's, Morgan Stanley's Mike Wilson, Wilson, JPMorgan's Marko Kolanovic Organizations: Service, CNBC Wednesday, TLT Treasury Locations: Stockton, TLT
Investors curious as to whether their bond funds could withstand an economic downturn would do well to look back to the last two recessions. The PGIM Core Bond Fund (TAIBX) and the Calvert Core Bond Fund (CLDAX ) earned returns of more than 8% from December 2007 to the end of June 2009, according to data from Morningstar Direct. Standouts include the Carillon Reams Core Bond Fund (SCCIX) , which incurred a 7.55% return from February through April 2020, per Morningstar. The Johnson Institutional Core Bond fund (JIBFX) and American Funds' Bond Fund of America (ABNDX) round out the top three, with total returns in that period of more than 4%. A combo of attributes Core bond funds have a combination of features that prepare them for downturns.
Persons: Liz Young, Lehman, Calvert, Paul Olmsted, Olmsted Organizations: Nasdaq, Federal, Lehman Brothers, Bond Fund, Morningstar Direct, Funds, Bond Fund of America, Morningstar, Treasury Bond ETF
The furious rise in interest rates appears to be fueling a spike in trading for long-term bond products, even those focused on high quality Treasurys. While many long-term bond funds have seen recent inflows, the iShares 20+ Year Treasury Bond ETF (TLT) is extending its ETF market leadership position. The popularity of ARKK was a classic momentum trade, while bond funds have mostly been crushed over the past year. TLT YTD mountain Long-term bond funds like TLT have fallen sharply in 2023. Klingelhofer did say he was more interested in adding mid-term duration than long-term duration products, however.
Persons: Todd Sohn, ARKK, " Sohn, Sohn, Jeff Klingelhofer, Klingelhofer, Allison Bonds, it's, Bonds Organizations: Treasury Bond ETF, Innovation, CNBC, Thornburg Investment Management, State Street Global Advisors
Returns from the Treasury market are growing more attractive with yields hovering near 5%, the highest since 2007. When the government has more trouble finding buyers for new Treasurys, yields will rise to attract interest. For instance, holders can't sell their bonds directly from a TreasuryDirect account. For greater access to the Treasury market, investors can turn to brokerages and some commercial banks, which act as the primary intermediaries of US debt. By using a broker to buy bonds in the secondary market, investors can also add Treasury assets into tax-free accounts, such as a Roth IRA.
Persons: , Matthew Liebman, Roth Organizations: Treasury, Service, Federal Reserve, Investing.com, Amplius Wealth Advisors, Bloomberg Locations: Brokerages, TreasuryDirect
A man is reflected on an electric stock quotation board outside a brokerage in Tokyo, Japan April 18, 2023. REUTERS/Issei Kato Acquire Licensing RightsOct 23 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. The ICE BofA Treasuries index fell 1.4% last week, its biggest fall since May, and is at an eight-year low. Perhaps ominously, however, Friday's bond market relief didn't ease the pressure elsewhere - Wall Street's three main indices still closed 0.9%-1.5% lower. According to Goldman Sachs, financial conditions in emerging markets and globally are the tightest in almost a year.
Persons: Issei Kato, Jamie McGeever, Treasuries, That's, Goldman Sachs, Pan Gongsheng, September's, Diane Craft Organizations: REUTERS, ICE, Traders, Bank of Japan, Australian PMI, PMI, Thomson, Reuters Locations: Tokyo, Japan, U.S, South Korea, Australia, Singapore, Asia, China, Australian
The biggest bond ETF hit a new low since July 2007 as the bond market meltdown continues. The iShares 20+ Year Treasury Bond ETF (TLT) has shed over 50% since its closing high in 2020. Unlike the conventional bond market, bond ETFs are traded on an exchange, like any other stock. Other bond ETFs like the iShares 1-3 Year and iShares 7-10 Year Treasury Bond ETFs have also been trading lower amid the bond market meltdown. Like any other ETF, one bond ETF can offer exposure to large numbers of bonds, giving investors an opportunity to diversify their portfolio.
Persons: , Jerome Powell Organizations: Treasury Bond ETF, Bond, Service, Treasury
The Janus Henderson AAA CLO ETF (JAAA) , which buys highly rated collateralized loan obligations, has grown rapidly this year and outperformed many popular bond ETFs. The fund has a 30-day SEC yield of 6.66%, putting it above the yield of U.S. Treasuries. JAAA YTD mountain The JAAA ETF has held up this year despite rising interest rates. There are other CLO ETFs on the market, including the BlackRock AAA CLO ETF (CLOA) that launched earlier this year, but JAAA is the largest. Given the size and depth of the AAA CLO market, the fund should have no problems operating until it is about $20 billion in assets, at least, he estimated.
Persons: Janus Henderson, John Kerschner, Kerschner, JAAA Organizations: Janus Henderson AAA CLO, SEC, CLOs, Treasury, Treasury Bond ETF, CNBC, JPMorgan AAA CLO, BlackRock AAA, AAA Locations: JAAA
Final Trades: WRK, NFLX, TLT & BABA
  + stars: | 2023-10-10 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: WRK, NFLX, TLT & BABAThe final trades of the day with CNBC’s Melissa Lee and the Fast Money traders.
Persons: BABA, CNBC’s Melissa Lee Organizations: Fast Money
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. But late in the afternoon, a senior Hamas official said the group is open to discussions over a possible truce with Israel. A recent surge in U.S. Treasury yields had pressured equities. Shares of the airlines, also hurt by rising oil prices, putting pressure on the S&P 500 Passenger Airlines index (.SPLRCALI). Exchange-traded funds exposed to Israel were selling off, with iShares MSCI Israel ETF falling along with the ARK Israel Innovative Technology ETF .
Persons: Brendan McDermid, Joe Biden, John Augustine, Augustine, Big advancers, iShares, Sinéad Carew, Shashwat Chauhan, Ankika Biswas, Arun Koyyur, Shounak Dasgupta, Richard Chang Organizations: New York Stock Exchange, REUTERS, Hamas, U.S, Federal, Huntington National Bank, Columbus, Peoples, Treasury, Fund, Nasdaq, Dow Jones, United Airlines, Delta Air Lines, American Airlines, Airlines, Defense, Aerospace, Northrop Grumman, L3Harris Technologies, Exchange, ARK Israel Innovative Technology ETF, Thomson Locations: New York City, U.S, Israel, Palestinian, Gaza, Columbus , Ohio, Tel Aviv, New York, Bengaluru
The list of top-performing exchange-traded funds since Sept. 19 — the day before the Federal Reserve released new projections that showed fewer rate cuts in 2024 — is dominated by leveraged and leveraged inverse products. The performance and increased interest shows that the inverse funds are doing their jobs, but there are important caveats for investors to know. The universe of inverse and leveraged inverse funds has grown widely, including sector-specific funds and even some single-stock products. Of course, the leveraged inverse funds can suffer massive losses if the market rebounds. Ullal also pointed out that some inverse products are technically exchange traded notes, not ETFs, which can introduce some credit risk in a trade.
Persons: Mohit Bajaj, Direxion's TMV, Bajaj, Aniket Ullal, Ullal Organizations: Federal Reserve, Bloomberg, Oil ETF, SCO, Nasdaq, Treasury, Treasury Bond ETF, U.S . Securities, Exchange, Bajaj, CFRA Research
"Retail investors are seizing opportunities from the rise in long-term government yields, albeit selectively. ... Retail purchases of TLT have reached unprecedented levels this past week. The takeaway is that retail traders have actually sought to buy this historic dip in one of the more popular Treasury ETFs," the note said. TLT 1M mountain The price of long-term bonds has fallen sharply over the past month, as shown by the TLT. If the move in rates calms, larger investors could come back to utilities as well, Vanda said.
Persons: Marco Iachini, Vanda Organizations: Vanda Research, Treasury Bond ETF, Retail, TLT, Utilities
Longer-duration Treasury prices have plunged in recent weeks, driving benchmark 10-year yields toward 5%. These charts show how the meltdown compares to previous market crashes, including the 2008 financial crisis. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementUS bond prices have plummeted in recent weeks, turning what had already been a bad stretch into one of the market's worst-ever routs.
Persons: , iShares, Lehman Brothers Organizations: Service, Federal Reserve, Bloomberg –, Treasury ETF
Dozens of stocks and ETFs are hitting 52-week lows on the relentless rise in interest rates. Treasury bond ETFs: New lows iShares 1-3 Year Treasury Bond ETF (SHY) iShares 7-10 Year Treasury Bond ETF (IEF) iShares 10-20 Year Treasury Bond ETF (TLH) iShares 20+ Year Treasury Bond ETF (TLT) It's not just Treasury bonds. Broad bond ETFs: New lows Vanguard Total Bond Market ETF (BND) iShares Core US Aggregate Bond Fund (AGG) Higher rates are affecting other areas of the U.S. economy: look at clean energy and biotech It's simple. Clean energy ETFs: New lows iShares Global Clean Energy (ICLN) VanEck Low Carbon Energy ETF (SMOG) Invesco WilderHill Clean Energy ETF (PBW) Invesco Solar ETF (TAN) It's the same story with biotech. The SPDR S & P Biotech ETF (XBI) , which tracks an equal-weighted index of US biotechnology stocks, is at a 52-week low.
Persons: Schwab, It's Organizations: Vanguard Utilities, Treasury Bond ETF, Bond Market, Bond Fund, NextEra Energy Partners, Clean Energy, Carbon Energy, P Biotech, Biotechnology, Biotech, Verizon, SPDR Telecom, AT, Property, Comerica, Huntington Bancshares Locations: U.S, Orsted, Denmark, REITs
Treasury yields are spiking to levels not seen in over 15 years, causing sell-offs in many of the market's biggest bond funds. The iShares 20+ Year Treasury Bond ETF (TLT) closed at $89.18 on Monday, which was its lowest close since Feb. 10, 2011, according to FactSet. The Fed's target interest rate is already above 5%, as are short-term Treasury yields. But the long-term decline in bond yields began roughly two decades before that. That trend may finally have reached its turning point, Jim Grant, founder of Grant's Interest Rate Observer, said Tuesday on CNBC's " Squawk Box ."
Persons: Bruno Braizinha, Braizinha, Goldman Sachs, Cecilia Mariotti, Mariotti, Ajay Rajadhyaksha, Jonathan Krinsky, Jim Grant, Grant, BTIG's Krinsky Organizations: Treasury Bond ETF, iShares, Aggregate Bond, Treasury, Bank of America, Barclays, Federal
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