Bond ETFs Unfazed By Fed Decision To Keep Rates Steady
Portfolio Pulse from Michael Juliano
The Federal Reserve decided to keep interest rates unchanged at a 23-year high of between 5.25% and 5.5%, aiming to reduce inflation from 3.3% to 2%. Bond ETFs remained stable, with slight increases in their prices. The Fed plans to continue reducing its holdings of Treasury securities and agency debt.
June 13, 2024 | 4:41 pm
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iShares Core U.S. Aggregate Bond ETF (AGG) shares were up 0.29% to $97.61 following the Fed's decision to keep rates steady.
The Fed's decision to maintain current interest rates supports a stable environment for bond ETFs, leading to a slight increase in AGG's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Fidelity Total Bond ETF (FBND) shares edged up 0.2% to $45.29 following the Fed's decision to keep interest rates unchanged.
The stability in interest rates provides a favorable environment for bond ETFs, leading to a slight increase in FBND's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
iShares Core Total USD Bond Market ETF (IUSB) stock ticked up 0.24% to $45.43 after the Fed's rate decision.
The unchanged interest rates create a stable environment for bond ETFs, resulting in a slight increase in IUSB's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Vanguard Tax-Exempt Bond Index Fund ETF (VTEB) shares went up 0.23% to $50.33 after the Fed's rate decision.
The stable interest rate environment is favorable for bond ETFs, resulting in a slight increase in VTEB's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80