Inflation protection ETFs see above-average volume ahead of FOMC announcement
Apr. 27, 2021 3:10 PM ETSchwab Strategic Trust - Schwab U.S. TIPS ETF (SCHP), SPIP, TIPTIP, SPIP, TIPZ, SCHP, STIP, VTIP, TIPXBy: Jason Capul, SA News Editor3 Comments
- Ahead of tomorrow's FOMC announcement and press conference with Federal Reserve Chairman Jerome Powell, and market participants are gearing up for forward guidance outlooks.
- The day before the announcement, investors can see an above-average amount of volume traded in a handful of treasury inflation-protected securities.
- Below is a handful of TIPS ETFs that have above average trade volumes on the day in comparison to the past twenty trading days:
- Schwab U.S. TIPS ETF (NYSEARCA:SCHP) has volume traded +639.60%, SCHP is -0.02% on the day.
- TIPS Barclays ETF SPDR (NYSEARCA:SPIP) has volume traded +417.91%, SCHP is +0.03% on the day.
- TIPS Bond Ishares ETF (NYSEARCA:TIP) has volume traded +113.34%, SCHP is -0.02% on the day.
- A few other treasury inflation-protected securities ETFs that are worth mentioning are (NASDAQ:VTIP), (NYSEARCA:STIP), (NYSEARCA:TIPX), and (NYSEARCA:TIPZ).
- Market participants will be analyzing what Powell has to say tomorrow, but one area of specific interest will be around the language of transitory strength in inflation.
- It should be noted that the U.S. 10-Year Treasury yield has risen five basis points on the day now at 1.62%.
- In the Fed's last statement, it said it would continue its pace of buying at least $80B per month of Treasury securities and at least $40B per month of MBS "until substantial further progress has been made toward the Committee's maximum employment and price stability goals."