"The bottom is here": Individuals buying U.S. long-term bond ETFs

Individual investors are actively buying U.
S. long-term bond exchange-traded funds (ETFs) that have fallen to their yearly lows. This is interpreted as investors engaging in bottom-buying in anticipation of a price recovery following a future decline in interest rates, as yields on long-term bond ETFs have plummeted due to the recent surge in interest rates. However, some point out that it is too early to expect a sustained downward trend in long-term interest rates, as the U. S. fiscal deficit and the burden of government bond issuance remain significant.
1 billion won worth of 'ACE U. S. 30-Year Treasury Active' over the past month (July 28 to August 28). This ranks first in net purchase volume among bond ETFs. 7 billion won of individual funds flowed into 'ACE U. S.
2 billion won into 'SOL U. S. 30-Year Treasury Covered Call (Synthetic)'. The prices of these ETFs have fallen to their yearly lows. 'ACE US 30-Year Treasury Active' closed at 8,920 won on the 28th, recording a new 52-week low based on the closing price.
0%. 09%) also ranked among the top performers in terms of decline rate. Nevertheless, the influx of retail funds appears to be driven by the judgment that US long-term Treasury yields have risen excessively in the short term. Since bond yields and prices move inversely, if yields peak and fall back, long-term bond prices, which have fallen significantly, could recover. 337% per annum during trading on the 18th.
It reached its highest level in about 19 years since 2007 and significantly surpassed the 5% level considered a psychological resistance level in the market.
[email protected] Park Ji-yeon Reporter