TIPZ News and Press, PIMCO Broad U.S. TIPS Index Exchange-Traded Fund From 07/13/21

The best news last week was the continuing decline in global bond yields, including the 10-year Treasury rate falling below 1.4% last Tuesday. If and when the Fed decides to raise key short-term interest rates, I don’t think they will be able to raise rates by much, since the f...

Ten-year government bond yields mostly fell in June, with those for Australia dropping by more than 16 basis points to 1.48%. The second biggest move came from the U.S. 10-year Treasury mid-yield, which ended June nearly 15 basis points lower at 1.44%, its lowest level since early Mar...

What makes the current scenario most interesting is the fall in the US Ten-Year note yield (TNX), which looks headed for a test of the 1.4% area. Certainly, the fall in bond yields points to expectations of a weakening economy, as well as the possibility that the Fed won’t open...

Risk-adjusted performance for the Global Market Index (GMI) continued to push higher in June, based on the annualized Sharpe ratio for a rolling ten-year window via monthly data. GMI’s 10-year SR increased to 0.84, the highest in 18 months. GMI is an unmanaged, market-value...

Investment uncertainty is focused on the nature of the current spike in inflation, which the Fed argues is transitory, though a growing number of people do not buy this narrative. Historically, the Fed has never been able to head off any longer-lasting inflation uptrends without a recessi...

The expected risk premium for the Global Market Index (GMI) resumed an upward drift in June, rising to an annualized 6.0%. The current risk premium forecast for GMI - 6.0% - suggests that multi-asset-class strategies will generate lower returns relative to results posted in recent yea...

MSCI US REIT Index rallied 2.7% in June, which marks an impressive run of eight consecutive monthly increases. The Russell 3000 Index jumped 2.5% in June, the fifth straight monthly advance. Comparing GMI to US stocks and bonds shows that global asset allocation remains competitiv...

Is it too early to be considering Federal Reserve “exit strategy” protection for your fixed income portfolio? I’ve been focusing a lot on this topic of late, and for good reason. While the timing of potential balance sheet tapering is certainly on my radar, it...

The reopening should continue across the major developed economies through the second half of 2021. The focus for markets has shifted to the strength of the growth rebound, the implications for inflation and the timing of central bank moves to taper asset purchases and eventually rais...

PIMCO’s baseline outlook for the cyclical horizon has the global economy continuing its uneven recovery before shifting to a more moderate pace of above-trend growth in 2022. With the pandemic receding across much of the world, policy support has also likely peaked and will tur...