Vanguard Long-Term Bond ETF
Whether the recent sell-off in the bond and stock markets is just a blip or the beginning of a sustained downward rally will depend on the upcoming US economic data.
Any negative news from the jobs report will be foreshadowed by the tax reform news. It’s the last jobs report before the September FOMC meeting.
Fundamentally, bonds (AGG) are a discount instrument and are generally never expected to be in a bubble. Let’s see why that’s the case.
To fuel economic growth and to achieve its target inflation, the Fed kept the short-term interest helping bond markets until the end of 2013, when the bond buying reduced for the first time.