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The Current Allure of ‘Ultrashort’ Bond Funds

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

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