| 
February 22, 2023
- IShares MBS ETF suffered relatively more than others yesterday after 1.13% dip As things stand, Vanguard Mortgage-Backed Securities ETF (down 1.11%) and iShares Core Total USD Bond Market ETF (down 0.969%) are underperforming today
- European markets have struggled to gain ground and are now trading lower midway through the session.
Ahead of today's session: leading equity indices in the US declined as after dropping 2.06%, Dow Jones closed at 33,130. S&P 500 shed 2% and closed at 3,997.34.
Trading in the US will continue today in around 58 minutes time, meanwhile European markets are down as FTSE slumps to 7,913.8 (down 0.8%). Asia-Pacific markets were down today as KOSPI Composite Index drops to 2,417.68 (down 1.68%).
In a tough day for US markets, both stocks and bonds suffered from risk-off sentiment and a higher likelihood of a hawkish Fed at its next FOMC meeting. The iShares U.S. Treasury Bond ETF declined 0.79% to trade at $22.69.
3Rd quarter earnings season is mostly over, with Keysight Technologies Inc & CoStar Group, Inc. releasing their earnings reports just this week.
While price action maintains a negative bias, United States Existing Home Sales (Jan) came out at 4 million, while a consensus of analysts was expecting 4 million. United States 2-Year Note Auction released yesterday at 18:00 UTC with a figure of 4.673, while the previous figure was 4.139. United States Existing Home Sales improved upon its previous reading of -2.2% with a new data release of -0.7%.
Looking ahead, ongoing depreciation may be prolonged as United States Crude Oil Inventories projected to decline to 1.17 million while previous data was 16.28 million; data will be released tomorrow at 16:00 UTC. United States Initial Jobless Claims projected to come out at 200,000 — worse than previous data of 194,000; data will be released tomorrow at 13:30 UTC.
Furthermore, United States Core PCE Price Index (MoM) (Jan) is scheduled for Friday.
Yesterday's bearishness meant that iShares MBS ETF lost 1.13% yesterday before closing at $92.79. As things stand, Vanguard Mortgage-Backed Securities ETF (down 1.11%), iShares Core Total USD Bond Market ETF (down 0.969%) are also underperforming today.
Vanguard Mortgage-Backed Securities ETF | Closed yesterday's session at $45.64
A tough session dominated by bearish sentiment left VMBS 51 cents lower, while setting a $45.6 to $45.82 session range. The fund disclosed a quarterly dividend of 10.9 cents per share on Tuesday, November 29th and was paid on Tuesday, December 6th — thereby generating a yield of 0.955% for all eligble investors.
The fund disclosed a quarterly dividend of 10.1 cents per share on Monday, October 31st and was paid on Monday, November 7th — thereby generating a yield of 0.9% for all eligble investors.
