This Macro Expert Explains Why Banking Turmoil May Be Far From Over — 'Monetary Policy Is Likely To Remain Tight...'
Portfolio Pulse from Bhavik Nair
Andreas Steno Larsen, Founder and CEO of Steno Research, believes that banking turmoil may continue due to persistent core inflation keeping monetary policy tight. The difference between money market fund rates and those offered by banks is also a cause of concern, with smaller banks likely to suffer. Bond markets are witnessing a decline, and the iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) and the Vanguard Short-Term Treasury Index Fund ETF (NASDAQ:VGSH) shed 0.14% on Friday.
June 20, 2023 | 11:45 am
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The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) shed 0.14% on Friday amid concerns of persistent core inflation and tight monetary policy.
The banking turmoil caused by persistent core inflation and tight monetary policy is negatively impacting bond markets. As a result, the iShares 1-3 Year Treasury Bond ETF (SHY) experienced a decline of 0.14% on Friday. This indicates a short-term negative impact on the ETF's price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The Vanguard Short-Term Treasury Index Fund ETF (NASDAQ:VGSH) shed 0.14% on Friday due to concerns over persistent core inflation and tight monetary policy.
The ongoing banking turmoil caused by persistent core inflation and tight monetary policy is negatively impacting bond markets. As a result, the Vanguard Short-Term Treasury Index Fund ETF (VGSH) experienced a decline of 0.14% on Friday. This indicates a short-term negative impact on the ETF's price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50