ProShares Trust UltraShort Lehman 7-10 Year Treasury

PST

Capitalización de mercado USD 11.1 M

Treasury Secretary Bessent insists on challenging the bond vigilantes, and neither side is backing down. The underlying trends are pointing toward volatility ahead and potentially much more.

On Wednesday, July 29, the FOMC rate decision will be followed by Microsoft and Meta earnings after the close. Thursday begins with the advance estimate of Q2 GDP and the June PCE inflation report before Apple and Amazon report after the bell. CME FedWatch currently implies a 62–65% probability that the Fed holds rates in July, with the remaining probability assigned to a hike.

Whether it's because you want to look at guaranteed income from your investments or you want to diversify your portfolio, dividends are becoming more of the norm for investors.

These ETF strategies may safeguard your portfolio amid rising treasury yields.

Long-term U.S. treasury yields have been on the uptrend lately. Benchmark U.S. Treasury yields were 4.26% on Nov. 5, up from 3.74% recorded on Oct.1.

The ECB cut rates by 25bp as widely anticipated, but a slightly hawkish tilt bear flattened the EUR curve, which in our view remains priced aggressively. In the US, as the markets head towards the Fed's first rate cut, the probability of a larger cut rose slightly on Thursday.

The Fed's Neel Kashkari believes that it's likely that the Fed will cut interest rates once in 2024, possibly in December.

Federal Reserve Chair Jerome Powell's recent remarks indicate a delay in rate cuts.

Stocks slumped to start Q2 as an interest rate cut by the Fed may come later than anticipated before. Investors can rely on these ETF strategies to play rising yields.

It generally takes a few years for changes in Federal Reserve rates to fully impact bond fund dividends. Bond funds are still benefitting from prior rate hikes. Perhaps by enough to cancel out any future rate cuts. By my estimations, and under current Fed guidance, most bond funds would only start to see declining dividends in 2025, at the earliest.