ETFs tracking U.S. bond market slip as investors weigh inflation report

view original post

Shares of exchange-traded funds that track the U.S. investment-grade bond market slipped Wednesday afternoon as investors parsed a fresh report on inflation.

The iShares Core U.S. Aggregate Bond ETF and the Vanguard Total Bond Market ETF were each down a slight 0.1% in early afternoon trading Wednesday, according to FactSet data, at last check. Investors on Wednesday are assessing a fresh reading on U.S. inflation in October from the consumer-price index report, which was in line with Wall Street’s expectations.

The CPI report showed that inflation, as measured by the consumer-price index, rose 0.2% in October for a year-over-year rate of 2.6%. Core inflation, which excludes food and energy prices, increased 0.3% October and climbed 3.3% over the past 12 months.