In the year ahead, many don’t believe the Fed will move too quickly or aggressively, so interest rates may move higher at a leisurely pace as inflation remains low, the global economic outlook seems tepid and the U.S. economy expands at its weakest pace in decades.
Consequently, JPMorgan Chase & Co. recently found that investors were more bullish on Treasuries at any time since 2013. The preference for long-term Treasuries isn’t something new. Over the last five rate hike periods, bond traders have consistently favored long-term Treasuries as the yield curve flattened.
iShares 20+ Year Treasury Bond ETF
Tom Lydon’s client own shares of TLT.