Bond ETFs React to Credit Crisis | ETF Trends

Fixed income exchange traded funds (ETFs) are of interest in these uncertain times as investors make a flight to quality in treasuries.

Murray Coleman of Index Universe talks to bond executive Matthew Tucker for Barclays’ fixed income arena.

Tucker says the steepening of the yield curve is a sign of investors migrating to safer, short-term securities.

The spread difference between 2- and 10-year Treasuries has gone from about .15% at the beginning of September to around .20%, a common sight when signs of a troubled economy show.