Federal Deficit Widens 170% From 2022, Setting The Stage For Political Rumble
Portfolio Pulse from Piero Cingari
The US federal deficit has increased by 170% to $1.39 trillion for the nine months through June, according to Treasury Department data. The cost of managing US government debt has risen by 25% to $652 billion in the first nine months of the fiscal year. The rise in interest rates has played a significant role in driving the deficit. The value of US Treasury bonds maturing in the next three to seven years, as monitored by the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI), is 10% lower than it was at the beginning of 2022.
July 13, 2023 | 8:13 pm
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The value of US Treasury bonds maturing in the next three to seven years, as monitored by the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI), is 10% lower than it was at the beginning of 2022.
The rise in interest rates has led to a decrease in the value of US Treasury bonds, which are tracked by the iShares 3-7 Year Treasury Bond ETF. This is because when interest rates rise, bond prices fall. Therefore, the ETF's value has decreased as a result of the rising interest rates.
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