XLRE - Treasury ETF And Real Estate Sector Rise Together As 30-Year Yields Dip Below 4% | Benzinga
U.S. 30-year Treasury yields fell below the 4% mark on Wednesday, reaching their lowest level since late July. The decline in long-dated Treasury yields has sparked a remarkable surge in fixed income and real estate assets recently, as market participants increasingly bet on the Federal Reserve’s potential rate cuts in the coming year.
Anticipating the Fed’s Next Moves: Money market funds are currently pricing in a substantial 164 basis point reduction in interest rates by December 2024. The first cut, widely expected in March 2024, is now seen as a near certainty, with Fed futures indicating a 90% probability of this scenario.
Chart: US 30-Year Yields Fall Below 4%
Fixed Income Investments Outshine: Amid this backdrop, fixed income investments have come into the limelight. The iShares 20+ Year Treasury ...