real-time news and commentary for investors
Thursday, Sep 19
Gross: Yellen's tenure has begun and it's short-end friendly
- The morning after finds long-dated Treasury prices flat after yesterday's big post-Fed gains.
- As loud as the action was at the long end of the curve, it's even louder at the short end. The December 2016 Eurodollar futures has erased about 2 Fed rate hikes between now and then with a near-50 basis point move higher since yesterday at 2 ET. At 97.62, it's now pricing in 200 basis points of hikes over the next 2-plus years. The 2-year Treasury yield is at 0.32% after being over 0.50% just days ago.
- "Not braggin' but what did we tell you," tweets Bill Gross. "Today marks the beginning of the Yellen Fed - front-end friendly for a long time."
- Short-duration Treasury ETFs: SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ.
- Long-duration Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.