Dividend (Yield): $8.44 (6.31%)
Vanguard Extended Duration Treasury
• Seeks to track the performance of the Bloomberg Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index.
• Passively managed using index sampling.
• Provides current income with high credit quality.
The Bloomberg Barclays U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index measures the investment return of Treasury STRIPS with maturities ranging from 20 to 30 years.
A Treasury STRIP represents a single coupon or principal payment on a U.S. Treasury security that has been “stripped” into separately tradable components.
The index includes zero-coupon U.S. Treasury securities with maturities ranging from 20 to 30 years.
Reflationary optimism that hopes U.S. President will be able to inject more fiscal stimulus have been pushing long-term rates even higher.
The yield curve spurted to reflect an inflationary backdrop. Fed has remained dovish over the past few weeks. A rise in energy prices has also led to rising inflationary bets.
The 10-year U.S. Treasury yield rose above 1.3% for the first time in nearly a year on Feb 16.
The benchmark yield, reached 1.309%, its highest level since Feb 27, 2020.
It marked the biggest daily jump, up by 10 bps , in more than three months.
The 30-year U.S. yield also rose, touching a one-year high of 2.095% on Feb 16.