Mar. 15 at 4:49 PM
Fixed Income Shift Toward Inflation Protection and Intermediate Treasuries
- Fixed income rotated toward inflation protection and intermediate Treasuries this week while credit and EM debt flipped negative and 3-month momentum decelerated across every ticker.
- Momentum breadth is mixed with 6 of 11 ETFs still positive even as weekly momentum weakened for all 11, thinning the tape.
- Leaders are
$TIP and
$IEI by holding up not accelerating, with their momentum well below their 52-week peaks.
- Laggards are
$LQD and
$EMB at their 52-week troughs in momentum, keeping spread and EM credit as the primary persistent drag.
-
$TIP and
$IEI run with positive 3-month correlation against
$SPY more than 0.4pt above their 52-week means, compressing diversification when defensives are expected to diverge.
