iShares 7-10 Year Treasury Bond ETF (IEF)

The United States experienced a mild deflation in May, according to new data from the Bureau of Economic Analysis. Click to read.

The U.S. economy grew at an annualized rate of 1.3% in the first quarter of 2024, marking a downward revision from the advance estimate of 1.6%. This represents the slowest growth rate since the second quarter of 2022. The revision was primarily driven by a decrease in real consumer spending, which was adjusted down from 2.5% to 2%. The GDP report from the Bureau of Economic Analysis, released Thursday, also indicated a slight downward adjustment of 0.1 percentage points in both the headline and core Personal Consumption Expenditure (PCE) price index for the last quarter. The slower-than-expected growth and marginally lower inflation figures eased Treasury yields, with the 10-year benchmark note falling 5 basis points to 4.57%. This drop sent bond ETFs higher, with the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) rising 0.4%. The critical question remains whether these developments will ease the pressure on the Federal Reserve to cut interest rates, or if further inflation reports are needed to gain a more comprehensive understanding of economic dynamics. 5 Economists React To Q1 GDP, PCE Data Chris Zaccarelli: The chief investment officer at Independent Advisory Alliance views the recent economic data as “a double-edged sword.” Slowing personal consumption signals that economic expansion is cooling. This could concern companies and stock market investors. But it also suggests ...Full story available on Benzinga.com

The sudden rise of chaos in the market due to geopolitical risks brightened the appeal for safe haven assets.

If you can overlook the danger, it's looking like a good entry point for long-term investors, says a private bank strategist.