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Why is SGOV Up Today After Treasury Issuance

The iShares 0-3 Month Treasury Bond ETF (SGOV) closed at $100.36 on February 4, 2025, marking a slight increase of 0.02% as the U.S. Treasury market experiences heightened activity. The U.S. Treasury's recent announcement of marketable borrowing estimates has influenced short-term Treasury yields, with a 7.1% y/y increase in issuance as of January. This increase, alongside a 7.8% rise in average daily trading volume, indicates robust market dynamics. The outstanding U.S. Treasury securities reached $28.3 trillion by December 2024, a 7.2% y/y increase, suggesting a strong supply that impacts short-term yields. These factors, combined with the Federal Reserve's decision to maintain interest rates amid economic uncertainties and new tariffs, have contributed to the current market environment.