{"id":6054,"date":"2023-11-02T13:35:13","date_gmt":"2023-11-02T13:35:13","guid":{"rendered":"https:\/\/connectwithfund.com\/markets\/bond-etfs-trade-higher-after-fed-statement-powells-remarks\/"},"modified":"2023-11-02T13:35:14","modified_gmt":"2023-11-02T13:35:14","slug":"bond-etfs-trade-higher-after-fed-statement-powells-remarks","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=6054","title":{"rendered":"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks"},"content":{"rendered":"
\n

Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark interest rate steady as it keeps up its battle to bring down elevated inflation.<\/p>\n

In its policy statement released at 2 p.m. Eastern Time on Wednesday, the Fed said that \u201ctighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.\u201d The tightening of financial conditions is one of the \u201ccritical concepts\u201d that BlackRock\u2019s chief investment officer of global fixed income, Rick Rieder, told MarketWatch that he would be focusing on Wednesday in the Fed\u2019s communication after its policy meeting wrapped up.<\/p>\n

\n

See<\/strong>: Fed keeps freeze on interest rates in place as it fine-tunes fight vs. inflation<\/p>\n

Fed Chair Powell indicated Wednesday during his press conference that the central bank is monitoring the increase in longer-term bond yields, \u201cwhich have contributed to a tightening of broader financial conditions since the summer.\u201d He said that \u201cpersistent changes in broader financial conditions can have implications for the path of monetary policy.\u201d\u00a0<\/p>\n

Shares of the iShares Core U.S. Aggregate Bond ETF
\n AGG
\n were up 0.9% on Wednesday afternoon as Treasury yields were falling, according to FactSet data, at last check. The yield on the 10-year Treasury note
\n BX:TMUBMUSD10Y
\n was down about 14 basis points at around 4.76%, while the two-year Treasury yield
\n BX:TMUBMUSD02Y
\n was trading 12 basis points lower at 4.94%.\u00a0<\/p>\n

Bond ETFs with longer-term maturities were seeing sharp increases in Wednesday afternoon trading, with the iShares 20+ Treasury Bond ETF
\n TLT
\n up 1.8% while the iShares 10-20 Year Treasury Bond ETF
\n TLH
\n gained 1.6%. So far this year, both funds have seen double-digit\u00a0 losses through October on a total return basis as bond valuations were hurt by surging yields.<\/p>\n

But bets on the front end of the yield curve have fared better in 2023, with the iShares 1-3 Year Treasury Bond ETF
\n SHY
\n returning a total 2% through last month, FactSet data show.<\/p>\n

Read:<\/strong> UBS sees \u2018greatest near-term upside\u2019 in fixed income after market sentiment soured<\/p>\n

\u201cMonetary policy is restrictive,\u201d said Powell, during the press conference. The Fed decided Wednesday to hold its benchmark rate at a target range of 5.25% to 5.5%.<\/p>\n

\u201cIn assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook,\u201d the Fed said in its statement Wednesday. \u201cThe Committee\u2019s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark interest rate steady as it keeps up its battle to bring down elevated inflation. In its policy statement released at 2 p.m. Eastern Time on Wednesday, the Fed said that \u201ctighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation.\u201d The tightening of financial conditions is one of the \u201ccritical concepts\u201d that BlackRock\u2019s chief investment officer of global fixed income, Rick Rieder, told MarketWatch that he would<\/p>\n","protected":false},"author":1,"featured_media":6055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-6054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"yoast_head":"\nBond ETFs trade higher after Fed statement, Powell\u2019s remarks | ConnectWithFund<\/title>\n<meta name=\"description\" content=\"Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/connectwithfund.com\/?p=6054\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks | ConnectWithFund\" \/>\n<meta property=\"og:description\" content=\"Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark\" \/>\n<meta property=\"og:url\" content=\"https:\/\/connectwithfund.com\/?p=6054\" \/>\n<meta property=\"og:site_name\" content=\"ConnectWithFund\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-02T13:35:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-02T13:35:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/1698932114_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/connectwithfund.com\/?p=6054\",\"url\":\"https:\/\/connectwithfund.com\/?p=6054\",\"name\":\"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks | ConnectWithFund\",\"isPartOf\":{\"@id\":\"https:\/\/connectwithfund.com\/#website\"},\"datePublished\":\"2023-11-02T13:35:13+00:00\",\"dateModified\":\"2023-11-02T13:35:14+00:00\",\"author\":{\"@id\":\"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52\"},\"description\":\"Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark\",\"breadcrumb\":{\"@id\":\"https:\/\/connectwithfund.com\/?p=6054#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/connectwithfund.com\/?p=6054\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/connectwithfund.com\/?p=6054#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/connectwithfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/connectwithfund.com\/#website\",\"url\":\"https:\/\/connectwithfund.com\/\",\"name\":\"FinMarkPros\",\"description\":\"Latest Finance News and Updates\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/connectwithfund.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/connectwithfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/connectwithfund.com\"],\"url\":\"https:\/\/connectwithfund.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks | ConnectWithFund","description":"Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/connectwithfund.com\/?p=6054","og_locale":"en_US","og_type":"article","og_title":"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks | ConnectWithFund","og_description":"Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark","og_url":"https:\/\/connectwithfund.com\/?p=6054","og_site_name":"ConnectWithFund","article_published_time":"2023-11-02T13:35:13+00:00","article_modified_time":"2023-11-02T13:35:14+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/1698932114_social.jpeg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/connectwithfund.com\/?p=6054","url":"https:\/\/connectwithfund.com\/?p=6054","name":"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks | ConnectWithFund","isPartOf":{"@id":"https:\/\/connectwithfund.com\/#website"},"datePublished":"2023-11-02T13:35:13+00:00","dateModified":"2023-11-02T13:35:14+00:00","author":{"@id":"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52"},"description":"Shares of large exchange-traded funds that buy bonds were getting a lift after the Federal Reserve announced on Wednesday that it\u2019s holding its benchmark","breadcrumb":{"@id":"https:\/\/connectwithfund.com\/?p=6054#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/connectwithfund.com\/?p=6054"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/connectwithfund.com\/?p=6054#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/connectwithfund.com\/"},{"@type":"ListItem","position":2,"name":"Bond ETFs trade higher after Fed statement, Powell\u2019s remarks"}]},{"@type":"WebSite","@id":"https:\/\/connectwithfund.com\/#website","url":"https:\/\/connectwithfund.com\/","name":"FinMarkPros","description":"Latest Finance News and Updates","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/connectwithfund.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/connectwithfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g","caption":"admin"},"sameAs":["https:\/\/connectwithfund.com"],"url":"https:\/\/connectwithfund.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts\/6054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6054"}],"version-history":[{"count":1,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts\/6054\/revisions"}],"predecessor-version":[{"id":6056,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts\/6054\/revisions\/6056"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/media\/6055"}],"wp:attachment":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}