CIU seeks to track the investment results of the Bloomberg Barclays U.S. Intermediate Credit Bond Index. The ETF’s focus is on investment-grade corporate debt and sovereign, supranational, local authority and non-U.S. agency bonds that are U.S. dollar-denominated and have a remaining maturity of greater than one year and less than or equal to ten years.
Final Round of Government Note Selloff
On Tuesday, the Treasury began auctioning off $34 billion worth of 3-year Treasury notes, its largest in the last eight years, as part of a $78 billion quarterly government refunding effort. The selloff commenced on Wednesday with $26 billion worth of the benchmark 10-year Treasury notes and will cap off today with an all-time high of $18 billion in 30-year notes.
Per MarketWatch, the demand for 30-year notes “drew weaker appetite than had been expected, according to sources. Bond investors absorbed an auction of $26 billion in 10-year notes Wednesday, which saw strong bidding, according to sources.”
For more trends in fixed income, visit the Rising Rates Channel.