The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE) experienced notable price movement on December 4, 2024, driven by shifts in U.S. Treasury yields. Early in the day, Treasury yields rose as investors anticipated comments from Federal Reserve Chair Jerome Powell and awaited key economic data, including the ADP employment report. The yield on the 2-year Treasury climbed to 4.196%, reflecting market expectations of a robust labor market and potential fiscal policy changes under the incoming administration. However, later in the day, yields reversed course following a drop in the ISM services index for November, which signaled uncertainty about future economic conditions.
The reversal in Treasury yields was further influenced by global factors, such as the potential political instability in France, which could impact European bond markets. The yield on the 10-year Treasury slipped to 4.199%, as investors adjusted their positions in response to the mixed economic signals and geopolitical developments. This decline in yields provided support for shorter-duration Treasury ETFs like XTRE, which are sensitive to changes in interest rates and economic outlooks.
The XTRE ETF rose to $49.04, marking a 0.14% increase from the previous close.