VGLT News and Press, Vanguard Long-Term Government Bond ETF From 11/04/22

Summary The pain in bond-land is palpable. The IGSB ETF is now more oversold than either the 2008 or 2020 lows. The 10-year Treasury yield closed at 4.12% today, despite Powell’s rhetoric from last night. In this post from Tuesday night, the relative attra...

Summary Since the peak in early June, $196 billion in Treasury securities have rolled off the Fed’s balance sheet, reducing the balance of Treasury securities to $5.57 trillion, the lowest since November 17. Since the peak, the balance of MBS had dropped by $62 billion. ...

Summary Upside inflation surprises prompted the U.S. Federal Reserve to hike its policy rate by 75 basis points (bps) for a historic fourth time. Chair Powell’s relatively hawkish press conference comments contrasted with the dovish statement. With U.S. inflation poised...

Summary This latest bear market bounce was predicated on good seasonality, the hopes for a typical mid-term election boost, and the rumors of a Fed pivot. Wall Street always finds a narrative for rallies in a bear market. But the negative economic and liquidity cycles remain uncha...

Summary Yesterday, Fed chair Jerome Powell reiterated his commitment to combating inflation (lagging indicator) at the expense of economic growth, employment and asset prices (leading indicator). In an abrupt reversal, every market sector tumbled into the close, with 474 of S&...

Summary Powell gave somewhat encouraging remarks in one out of three in yesterday’s press conference. A pause and pivot, in short, are nowhere on the immediate horizon. By some accounts the Fed is at risk of overtightening and throwing the economy into recession. ...

Summary Fed's Powell remains hawkish on rates, despite dovish overtures in statement. The Fed reiterates its intension that rates will remain high until inflation is cracked. Why rates are going to be higher for longer, even after inflation comes down. Th...

Summary Markets hoped for a dovish Federal Reserve “pivot,” but got a hawkish surprise instead. Markets were convinced this would validate the drop in bond yields that took place last week, and turn it into the beginning of a steady decline. Asked about the Decem...

Summary Why lending has remained strong for U.S. banks even as a recession looms. Does the Fed have to go 'too far – too fast' to tackle inflation? The signals that are causing banks to become more cautious about loan losses. Aggressive rate hikes by t...

Summary U.S. Fed hikes rates another 75 basis points. What are the risks the U.S. Fed overshoots and causes a hard landing. The outlook for the U.S. dollar. The U.S. Federal Reserve delivered another three-quarter-point rate hike, taking rates to their highes...