The BondBloxx Bloomberg Three Year Target Duration US Treasury ETF (XTRE) is experiencing upward movement today, driven by a notable decline in Treasury yields. The 10-year Treasury note yield fell by approximately 2 basis points to 4.16%, reflecting a broader trend of declining yields across the curve. This movement is largely attributed to the market's reaction to the recent U.S. Nonfarm Payrolls report, which showed a stronger-than-expected increase in jobs, yet also a slight uptick in the unemployment rate to 4.2%. These mixed signals have reinforced expectations for a Federal Reserve rate cut in December, further supporting bond prices.
Additionally, the announcement of Scott Bessent as the nominee for Treasury Secretary under President-elect Trump has been perceived as market-friendly, contributing to the decline in yields. This development has led to a significant drop in yields, with the 2-year yield experiencing its largest daily move since September. The market's anticipation of a shallower path of rate cuts in 2025, coupled with ongoing economic strength, has also played a role in the current bond market dynamics.
The XTRE ETF is currently priced at $49.12, reflecting a 0.16% increase from the previous close.