VGLT News and Press, Vanguard Long-Term Government Bond ETF From 10/05/22

Summary Treasury yields continued to rise during the third quarter of 2022. Despite volatility in equities and spreads throughout the quarter, the net movement in spreads was minimal. As we move into the fourth quarter of 2022, we will look to continue increasing the book yiel...

Summary Taken by themselves, yesterday’s moves in all three asset classes were large but hardly out of the norm. What was unique about yesterday, or at least used to be considered unique, was the fact that all three asset classes rallied 1.5%+ on the same day. It’...

Summary Geopolitical tensions, elevated market volatility, and the fastest pace of central bank tightening in decades are contributing to an unusually uncertain economic environment. In addition to higher income potential, yields are high enough to provide the potential for capita...

Summary The problem with extreme swings in monetary policy is that they cause extreme swings in markets. After the initial surge in March 2020 at the onset of the pandemic, the Fed’s balance sheet rose by $120 billion per month for 1-½ years. QE can create market a...

Summary The Fed’s goal is to inflict quick, near-term pain on the economy in exchange for long-term price stability and future economic gains. When it comes to inflation, the good news is that it appears to be peaking, and many economists see the declining inflation trend c...

Summary The Federal Reserve continued to raise short-term rates in their battle to slow inflation in the third quarter. The end of the quarter saw Hurricane Ian deal a lethal blow to southwest Florida. The economic impact is severe and portends a big downshift in the economy o...

Summary Last week, the 2-year Treasury rate rose above 4.3%, the 10-year Treasury rose above 3.9%, and mortgage rates topped 7%, their highest level in 20 years. By reducing its balance sheet by $95 billion per month, the Fed has sent the 10-year rate substantially higher. The...

Summary Rising prices continue to confound expectations that slowing global growth will ease inflation pressures. Financial market turbulence may be here to stay for some time. The ability to rebalance negatively correlated assets helps generate income and potential return whi...

Summary Elevated inflation, currencies, slowing global economic growth expectations, and reduced central bank liquidity remain key economic considerations. Volatility measured by the VIX spiked in September after declining in August. This wall of worry is real, but it is impor...

Summary The new regime poses an unavoidable trade-off for central banks: tame inflation by hiking or preserve growth. We see them overtightening rates, so keep risk low. UK gilt yields reached 14-year highs before the Bank of England intervened to halt the selloff. Yields on 10-ye...