The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE) is experiencing upward movement, driven by recent developments in the U.S. Treasury market. On December 4, 2024, the yield on the 10-year Treasury note dipped slightly following weaker-than-expected economic data, including a lower-than-anticipated ADP private payroll report and a decline in the Institute for Supply Management's services sector index. These indicators suggest a potential slowdown in economic growth, prompting investors to seek the relative safety of shorter-duration Treasury securities, which XTRE tracks.
Additionally, comments from Federal Reserve officials have influenced market sentiment. St. Louis Federal Reserve President Alberto Musalem indicated that inflation might take another two years to reach the central bank's target, advocating for a patient monetary policy approach. This has led to a mixed reaction in Treasury yields, with the 10-year yield rising slightly after Musalem's remarks, while the short end of the curve, including the three-year duration, remains attractive to investors anticipating potential rate cuts in the near future.
The XTRE ETF rose to $49.03, marking a 0.12% increase as of 12:00 PM ET on December 4, 2024.