FYI: A Federal Reserve policy shift that has created uncertainty over interest rates, is generating renewed interest in ultrashort-term bond funds.
Slowing economic growth and quiescent inflation—the same factors that led the central bank to pause its interest-rate increases earlier this year—have left short-term and long-term interest rates at about the same level. That’s good for ultrashort bond funds, which typically invest in high-grade paper with duration of less than a year.
Regards,
Ted
https://www.wsj.com/articles/the-current-allure-of-ultrashort-bond-funds-11554689100
