12/5

BondBloxx ETF Flat Amid Rising Treasury Yields and Fiscal Concerns

The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF remains unchanged as market participants digest recent developments in the U.S. Treasury market. On December 5, 2024, U.S. Treasury yields rose slightly, with the 10-year yield increasing by over 2 basis points to 4.205% and the 2-year yield climbing more than 3 basis points to 4.152%. This movement comes as investors process a weaker-than-expected jobs report and anticipate further economic data releases, including initial jobless claims and nonfarm payrolls. The rise in yields reflects ongoing concerns about the U.S. government's fiscal health, with a $2 trillion deficit projected for the fiscal year, adding to the national debt burden.

Despite the Federal Reserve's efforts to lower the Fed Funds Rate, U.S. Treasury yields have been rising, indicating a divergence between short-term and long-term interest rates. This trend is partly driven by inflationary pressures and the U.S. dollar's reserve currency status, which has been under scrutiny. The market's focus remains on the upcoming economic data, which could further influence yield movements and investor sentiment. As yields and prices move inversely, the unchanged price of the ETF suggests a balance between these opposing forces in the bond market.

The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF is trading at $49.06, unchanged from its previous close.