VGLT News and Press, Vanguard Long-Term Government Bond ETF From 09/26/22

Summary Leading central bank interest rates, set by to fight inflation, are attempting to peak in the near future. With sub-4% rates for US Treasuries, 10-year high-grade corporates at 4.6%, and medium-grades at 5.23%, the premium for government paper appears to be in place. Howev...

Summary The Fed will hike until something breaks. And politicians in DC will not let Powell break inflation. Things are starting to break - the British pound, the Japanese yen, the German energy market. The market has been pinning its hopes on the idea that the Fed would pivot...

Summary The Fed funds target rate is now in the range of 3.0 to 3.25 percent. Indications provided by the members of the FOMC at this week’s meeting suggests that the Fed funds rate will eventually settle somewhere just north or just south of five percent. As Fed chair ...

Summary Powell reiterates commitment to restoring price stability. ECB plans to continue rate hikes despite growth slowdown. How rising rates are impacting the U.S. housing market. On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristu...

Summary As evidence piles up that the stock market is caught in a bear market, the focus inevitably turns to analytics that will signal a high-confidence forecast that the selling has reached exhausted itself and a bottom has arrived. In other words, there’s (still) no silv...

Summary There are some important financial implications to below-trend economic growth. If inflation remains high, interest rates will adjust, triggering a debt crisis as servicing requirements increase and defaults rise. Most of the aggregate growth in the economy was finance...

Summary At its September meeting, a hawkish Federal Reserve conveyed its resolve to bring inflation down. In our view, the most important adjustment was to the “dot-plot” estimates of future policy rates, which projected a fed funds rate at 4.25-4.50% by year-end. ...

Summary The Fed’s GDP growth forecast was lowered to just .2% in 2022 and 1.2% in 2023 and well below the 2.5% US GDP growth capacity estimate. The US 2 and 30-year Treasury yield curve inverted 58 bps, the most since 2000. If December 2022 ends this hiking cycle, follo...

Summary As expected, the FOMC increased the range for the federal funds rate by 75 basis points to 3-3.25%. Powell went on to note that there were notable imbalances between supply and demand in many different commodity and service sectors that were contributing to inflation. ...

Summary As comments from heads of central banks go, yesterday’s press conference was relatively lucid. In the case of deciding when the bond market writ large bottoms and begins an extended rise, a fourth factor comes into play: investor sentiment. As yields rise and in...