Since the market anticipates that the US Federal Reserve (Fed) will suggest an imminent interest rate cut cycle at the FOMC meeting on the 31st, US bond prices have continued to rise recently. The data shows that the Bloomberg US Treasury Index, which is the main indicator of US bonds, rose 1.3% this month due to the recent surge, boosting returns from the end of April to about 3.9%.
As the Fed's interest rate cut approaches, the market is showing movements linked to interest rate cuts. In general, demand for financing is highSmall caps and biotech companiesIt is easily affected by interest rates, and it is easy to benefit from interest rate cuts. Also, in the early stages of interest rate cutsU.S. BondsThe probability that it will rise is very high, and the decline in real yieldgoldAlso forGood materialIt becomes. Which ETFs will benefit from interest rate cuts?
●US medium- and long-term bond ETF
In the early stages of interest rate cutsU.S. BondsIt is said that the probability that it will rise is extremely high. Also, long-term bonds are more sensitive to changes in interest rates than short-term bonds. This is because long-term bonds pay fixed interest over the future, so changes in interest rates have a larger impact on long-term cash flow. Long-term US bond ETF TLT is sensitive to changes in interest rates, and when interest rates rise, the TLT price falls...

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