Yellen said that the Fed will take a “patient” approach. However, market observers are wary that this was a hint of a increased rate hike talks over the next couple of meetings. Fed Bank of San Francisco President John Williams also said that policy makers’ patient approach hints at a move toward raising rates.
In response to rising rate expectations, the actively managed short-term bond ETFs have already registered a slight decline of about 0.1% over the past three months – yields and bond prices have an inverse relationship, so a falling price corresponds with a rising yield. [Investors Dumping Short-Term Bond ETFs]
PIMCO Enhanced Short Maturity ETF
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.