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Treasury Bond ETF (SHY) Hits New 52-Week High

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For investors looking for momentum, iShares 1-3 Year Treasury Bond ETF (SHY - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 3% from its 52-week low of $83.52/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

SHY in Focus

The fund seeks to provide exposure to short-term U.S. Treasury bonds and tracks theICE U.S. Treasury 1-3 Year Bond Index. It charges 15 bps in fees and has an AUM of $18.38 billion  (see all Government Bond ETFs here).

Why the Move?

For the first time, the benchmark 10-year U.S. Treasury note yield has fallenbelow 1% on Mar 3. The declining yields were a result of investors’ flight for safety to bonds, as concerns over slowing global economic growth due to the coronavirus outbreak started escalating. The rapidly-aggravating concerns are making high-yielding fixed-income investments attractive.

More Gains Ahead?

The fund has a Zacks Rank #2 (Buy). It seems like the fund will remain strong with a positive weighted alpha of 2.80, which gives cues of further rally.

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