Investor Interest Surges in Long and Short-Term Bond ETFs
Expectations of a U.S. interest rate cut and stock market instability have led to a surge in investor interest in long-term and short-term bond ETFs. Notably, 'TIGER U.S. 30-Year Treasury STRIP Active' and 'KODEX U.S. 30-Year Treasury Ultra Futures' saw price increases of 6.01% and 3.93% respectively. Japanese yen-exposed bond ETFs also experienced significant gains.
However, as concerns over the U.S. economic recession ease and interest rates rise slightly, some of these gains have been rolled back. Currently, investors seeking stable returns are showing considerable interest in short-term bond ETFs, a trend linked to expectations of a Fed rate cut and increased demand for safe assets.
Given the possibility of a Japanese rate hike and ongoing concerns over U.S. economic downturns, yen-exposed U.S. Treasury ETFs are gaining attention. Over the past week, 'RISE U.S. 30-Year Treasury Yen-Hedged (Synthetic H)' and 'ACE U.S. 30-Year Treasury Yen-Hedged Active (H)' have risen by 13.2% and 13.4% respectively, while the 'iShares 20+ Year US Treasury Bond JPY Hedged ETF' listed on the Japanese market increased by 6.3%. However, the potential for further gains may be limited.
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