Bond ETFs performed flat today. The short-term treasury ETF SGOV was completely stable with no change, while the long-term treasury ETF TLT fell 0.6%😔.
Regarding the direction of the yield spread between the short and long ends, the short end is basically anchored by Fed policy and barely moves, while the long end experiences slight fluctuations based on market adjustments to economic expectations.
The limited drop in TLT indicates that today's shift in interest rate expectations is hawkish in direction but limited in intensity.
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