VGLT News and Press, Vanguard Long-Term Government Bond ETF From 10/28/22

Summary In recent decades, every instance in which the economy contracted two quarters in a row has coincided with a recession. The Fed tends to keep an even closer eye on the 10-year/3-month spread, and even that is now pointing to recession as well. The Fed has temporarily s...

Summary Where opportunities might be emerging in the battered bond market. Why the bond market may face even more volatility. Bond market volatility. Is the bottom in sight? Global bond markets have suffered their worst selloff in decades, as central banks ag...

Summary Is the end in sight for rates hikes in Canada? The BOC says growth will slow, but will the economy slip into recession? What higher rates may mean for Canadian household spending. Canada’s central bank hikes its key interest rate by 0.50%, the ...

Summary There is a whole generation of investors who have never experienced UST yields at these elevated levels. The rise in yields has been across the maturity spectrum, with the closely followed 2-, 5- and 10-year notes all experiencing surging yields thus far in 2022. Highe...

Summary Here are my big three for investors to consider in the fourth quarter of 2022: recessionary fears, high inflation, and slowing growth. As we analyze the risk of recession in the United States, we must consider whether the country can shift into a more normal expansion. ...

Summary A super-strong dollar, collapsing housing and commodity prices, and a huge increase in real interest rates were all but shouting at the Fed to back off and give the economy some time to digest things. If the Fed had been paying attention to the slowdown in M2, they would h...

Summary After trading up near 4.3% intraday on October 24th, the 10-year yield got as low as 4.05% this morning and is currently resting at 4.09% for a decline of 14 basis points on the day. Today is actually the 40th trading day this year that the 10-year yield has moved 10 bps o...

Summary Year-to-date, allocations to floating rate notes have resulted in a more than 20% performance differential compared to U.S. 10-Year notes. Rising rates explain why owning the same securities as the Agg but reducing the maturity profile (1–5 years) led to losses that...

Summary Real interest rates have been on the decline for decades. Foreign governments and investors bought US bonds to manage their currency and because it was seen as a safe asset. This may cause problems for financial markets that have become accustomed to zero interest rate...

Summary Labor markets appear to be one of the primary determinants of Fed policy at the moment, with tight conditions and concern over a wage-price spiral driving higher interest rates. Labor markets may not actually be as tight as they appear on the surface though, and there is e...