10-year Treasury yields have retreated from near 5% to around 4.52%, a positive sign for bond investors and suggesting analyst expectations of renewed interest in U.S. government debt. This trend could benefit aggregate bond ETFs, notably Vanguard’s BND which experienced a nearly 1% increase last month. Some believe persistent issues impacting bonds in 2023 may not recur next year due to factors like spending sequester and hiring returning to pre-pandemic levels.
Dawn Could Be Nearing for Aggregate Bond ETFs
10-year Treasury yields have retreated from near 5% to around 4.52%, a positive sign for bond investors and suggesting analyst expectations of renewed interest in U.S. government debt. This trend could benefit aggregate bond ETFs, notably Vanguard’s BND which experienced a nearly 1% increase last month. Some believe persistent issues impacting bonds in 2023 may not recur next year due to factors like spending sequester and hiring returning to pre-pandemic levels.