2024-02-20 14:47:55 ET
Summary
- Treasuries have been choppy in recent weeks amid resilient economic data points.
- Expect more volatility in the coming months, particularly for the longer maturities.
- Higher-yielding T-bill ETFs like CLIP continue to offer the best risk/reward.
It’s been a topsy-turvy last few weeks for Treasury rates, and January's stronger-than-expected inflation print only added to volatility across the curve. On a somewhat positive note, investors appear to be paring back expectations for an aggressive Fed easing cycle in reaction. As a result, current levels imply not only a delayed start but also a convergence with Fed guidance on the number of 25bps rate cuts for 2024 (down to about four cuts vs. a peak of six to seven cuts prior)....
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CLIP: Target The Highest-Yielding Section Of The Treasury Curve