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Why is AGG Up Today After Trade Uncertainty

The iShares Core U.S. Aggregate Bond ETF (AGG) closed up 0.19% at $97.35 on February 4, 2025, as U.S. Treasury yields dipped amid ongoing trade policy uncertainty and mixed economic data. The yield on the 10-year U.S. Treasury note fell to 4.515%, down 2.8 basis points, influenced by President Trump's decision to delay tariffs on Mexico and Canada, which eased some market tensions. Additionally, the JOLTS report showed a significant drop in job openings, indicating potential softening in labor demand, which contributed to the decline in yields. The market is also reacting to expectations of fewer rate cuts by the Federal Reserve in 2025, as inflation concerns persist under the new administration.