Investors looking to put their cash to work could currently see a lot of merit from Treasury bonds.
With Treasury yields remaining in a good position, investors can use short-term U.S. Treasuries to lock in strong returns. Short-term U.S. Treasury bonds are in a good position to capture returns from Federal Reserve interest rate calls while mitigating potential volatility from long-term rates.
“Now, though, with the annual inflation rate falling, the fundamental outlook for the rest of 2024 and beyond is more positive for bonds than it has been in some time,” Jeff Sommer of the New York Times noted. “If you’ve got cash sitting in a money market fund earning 5 percent a year in interest or more, you may want to start planning ahead because those lovely short-term interest rates could start to decline fairly soon — while bond returns would receive a hefty bonus.”
Short Duration Options
The BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE ) can be a valuable option for investors seeking to move cash off the sidelines. XONE invests in U.S. Treasury securities with an average duration of about one year.
With an extremely low expense ratio of 0.03%, XONE can help investors use their cash to diversify and lock in additional returns. Treasury yields currently find themselves in a good spot, opening up an opportunity for investors to capitalize ahead of any economic shifts for the second half of the year.
Return-seeking investors should be satisfied with XONE’s current results. As of June 28, 2024, the fund has a yield to maturity of 5.01%. XONE’s returns are the result of BondBloxx’s extensive experience in managing fixed income investment strategies.
Strong fund flows are supporting the investor case for short-duration U.S. Treasuries. Accordingly, as of July 5, 2024, XONE has seen over $19 million in net flows within the last month
There are also plenty of other available bond options using BondBloxx’s investment strategy. BondBloxx currently has 24 ETFs listed in the United States, representing over $3 billion in assets under management.
For more news, information, and analysis, visit the Institutional Income Strategies Channel.
