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Monday, March 31, 2014

Biggest ETF Flow From U.S. Debt Since ’10 Signals Rate Rise

http://www.bloomberg.com/news/2014-03-30/biggest-etf-exodus-from-treasuries-since-10-signals-higher-rate.html

Investors of exchange-traded funds that buy U.S. government debt are signaling their conviction the Federal Reserve is intent on raising interest rates sooner rather than later.
After pouring into the ETFs to start the year, investors pulled $10.3 billion in March, the biggest exodus since December 2010, data compiled by Bloomberg show. The $7.86 billion iShares 1-3 Year Treasury Bond ETF alone lost a third of its assets from withdrawals, the most of any fixed-income fund this month.

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