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Posted by
Two Blokes Apr 27 -
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Stock
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The iShares 3-7 Year Treasury Bond ETF is sensitive to yield curve changes, making it risky amid rising inflation expectations and disappointments regarding rate cuts. IEI's irregular maturity profile increases costs unnecessarily; cheaper alternatives with similar duration exposures exist, making IEI specifically uninteresting. The bond market's optimism on rate reductions may be misplaced, as rising inflation expectations and partial oil price recovery could force the Fed to prioritize inflation control.
