2020-06-02 00:00:00, Jeff Shen, BlackRock Blog

Content Categorization
/Finance/Investing

Word Count:
1382

Words/Sentence:
25

Reading Time:
13.82 min

Reading Quality:
Advanced

Readability:
16th or higher

Media Sentiment
Proprietary sentiment analysis on both the headline and body text of the article. Sentiment scores range from -1 (very negative sentiment) to 1 (very positive sentiment).
RCS Analysis
Relative scoring for Risk, Crisis, and Security language within the article.
Risk Score
Scoring based on the composite risk, security and crisis language within an article compared to a baseline of historic analysis across thousands of diverse articles.
PESTEL Scope
Analysis of article orientation across the PESTEL macro-environmental analysis framework. Learn more about PESTEL.
Entity Word Cloud
Key people, places, organizations and events referenced in the article, weighted by frequency and colored based on contextual sentiment.
Auto Summary
Condensing key features of the article based on salience analysis. Helpful for “gisting” the article in a time crunch.

Customize your exposure to interest rate risk: With 20 options available spanning different maturity ranges and target years, iShares Treasury bond ETFs can help you target the duration you seek.

Less vanilla than you think

Although U.S. Treasuries are often seen as boring by investors who tend to see news headlines focused on corporate and high yield markets, the Treasury market is actually a very diverse and dynamic place.

The ETFs are balanced monthly by the portfolio management team to keep the funds exposed to the specific part of the Treasury market as specified in the funds' investment objectives, such as 7-10 years or 0-3 months.

In 2014, floating rate Treasury notes (FRNs) were introduced, providing investors with the option to invest in Treasuries whose coupon adjusts based on the prevailing interest rates, and are just 2.3% of the total U.S. Treasury issuance today.

As you can see in the chart below, the net issuance in 2020 is about to double from the levels in 2008-underscoring investor demand for principal protection.

In April 2020, demand for T-bills spiked and something unheard of happened-they briefly had negative yields in the secondary market.

Keywords
Treasury ETFs

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