Investors have pulled almost $500m from Amundi’s US yield curve steepening ETF amid bets the Federal Reserve will not cut rates as quickly as market expectations.
According to data from ETFbook, the Amundi US Curve Steepening 2-10Y UCITS ETF (STPU) has seen $486m net new redemptions so far this month, as at 21 March, while investors have pulled a further $220m from the Amundi US Curve Steepening 2-10Y UCITS ETF Monthly Hedged To GBP (STPH).
Outflows from STPU come after US inflation came in above forecasts in both January and February, a key driver behind the Fed’s decision to keep interest rates at a 23-year high of 5.25-5.5%.
Markets are pricing in a 36.8% chance the US central bank will lower rates four or more times in 2024 versus as many as seven cuts at the start of the year following the Fed’s dovish signals last December.
The lack of movement in rates so far this year has…
