Treasury Bond ETFs: Best Start to Year Since 2013


“We have a Treasuries yield curve that’s clearly reflecting that expectation of lower-for-longer rates, and is also clearly being influenced by global capital flows,” William Northey, chief investment officer for U.S. Bank’s private client group, told Bloomberg. “We’re receiving a lot of capital flows from around the world right now, which is influencing how low our rates have moved.”

Northey is referring to the increasing number of negative yield-generating bonds in international markets, which has caused many foreign investors to look into U.S. fixed-income assets as a better source of yield.

Related: Safe-Haven ETFs for a Rocky Summer

For instance, the Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF recently attracted a $138 million block traded, representing more than 60% of outstanding shares, Bloomberg reports.

“Zeros do well in a rally, always,” George Goncalves, head of U.S. interest rates research at Nomura Securities, told Bloomberg. “They are a pure play on duration.”

For more information on the Treasuries market, visit our Treasury bonds category.