The U.S. bond market and bond ETFs staged a strong rally today as stocks declined in response to the weak job report and ongoing concerns over the resurgent debt crisis in Europe.
Most bond ETFs tracked higher as market participants look towards the weekend.
iShares Barclays Treasury Inflation Protected Securities Bond Fund ETF (NYSEARCA:TIP): +0.14%, This ETF seeks to track the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index. The Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index reflects the performance of the inflation-protected sector of the United States Treasury Market.
iShares Barclays 20+ Year Treasury Bond Fund ETF (NYSEARCA:TLT): +0.90%, This ETF seeks to track the performance of the 20+ Year United States Treasury Bond Market as reflected by the Barclays Capital 20+ Year Treasury Bond Index. The Barclays Capital 20+ Year Treasury Bond Index tracks the performance of US Treasury Bonds with over 20+ years of remaining maturity. 20+ Year Treasury ETF (NYSERACA:TBT) tracks the inverse, 2X performance of the index on a day to day basis.
Corporate Bonds ETF Update:
iShares iBoxx $ Investment Grade Corporate Bond Fund ETF (NYSEARCA:LQD): +0.28%, This ETF tracks the overall corporate bond market as reflected by the iBoxx $ Investment Grade Corporate Bond Index. The iBoxx $ Investment Grade Corporate Bond Fund Index seeks to reflect the performance of US dollar denominated corporate bonds available for sale in the United States.
Total Bond Funds ETF Update:
iShares Barclays Aggregate Bond Fund ETF (NYSEARCA:AGG): +0.13%, This ETF seeks to track the total performance of the US Bond Market, as reflected by the Barclays Capital U.S. Aggregate Bond Index. The Barclays Capital U.S. Aggregate Bond Index seeks to reflect the performance of all US bonds including United States Treasury Bonds, investment grade corporate bonds, and mortgage pass-through securities.
Global financial markets were roiled today by the weak U.S. jobs report and ongoing concern over contagion in Europe as Spanish and Italian bond yields spiked back to near pre-summit levels. Also reports today indicate that Goldman Sachs, BlackRock and Morgan Stanley have closed several European money market funds to new assets in response to the European Central Bank cutting its deposit rate to 0%.
Bottom Line: Global equities markets remain nervous with “risk off” trade dominating Friday action into the weekend. U.S. bond market remains “safe haven” for global investors.
Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.