Economics
ETF Investors Snap Up Long-Term Treasuries on Fed Inflation View
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Longer-term Treasuries, posting the strongest returns since 2011, are luring investors in exchange-traded funds at the expense of shorter-term debt on speculation the Federal Reserve will tighten monetary policy and hold inflation in check.
Government-bond ETFs have recorded inflows $8.7 billion this year, pushing assets up by 25 percent to $34.5 billion, the largest increase of any fixed-income or equity class, according to data compiled by Bloomberg. The difference in inflows between the iShares 20+ Year Treasury Bond ETF, the largest for longer-dated Treasuries, and the iShares 3-7 Treasury bond ETF has reached 13.7 million shares outstanding, the widest gap since July 2013.