Hello,
I'm rather investing beginner and my conservative part of ETFs is now basicaly made by U.S. Treasury Bond 7-10yr ETF. To get to the problem: I've chosen particulary iShares UCITS - IUSM:GR, traded at Xetra. Currently, if you check e.g. the U.S. 7 Year Treasury Note interest rate, it continuously descended this year from 1,5 to 0,5%.
By my humble knowledge, that should have a positive growing effect on the price of U.S. 7 Year Treasury Bond and corresponding for 10yr. I can see such relation reflected on iShares 7-10 Year Treasury Bond ETF traded in NASDAQ, or also similar Swiss Invesco ETF.
However, if one compare it to the mentioned German iShares 7-10 Year Treasury Bond ETF, its price developed roughly same until half May, but until now it's falling somewhere to pre-Covid values.
I understand that except U.S. gov. bond interest rate, there are more factors for change in these ETFs, like Infation, Currency rates, that ETF holdings composition is not exact same etc. Though can someone please explain, what is the main thing causing such difference between trading Countries? Is the cause more general and not related only to Bond ETFs?
Thank you very much.
I'm rather investing beginner and my conservative part of ETFs is now basicaly made by U.S. Treasury Bond 7-10yr ETF. To get to the problem: I've chosen particulary iShares UCITS - IUSM:GR, traded at Xetra. Currently, if you check e.g. the U.S. 7 Year Treasury Note interest rate, it continuously descended this year from 1,5 to 0,5%.
By my humble knowledge, that should have a positive growing effect on the price of U.S. 7 Year Treasury Bond and corresponding for 10yr. I can see such relation reflected on iShares 7-10 Year Treasury Bond ETF traded in NASDAQ, or also similar Swiss Invesco ETF.
However, if one compare it to the mentioned German iShares 7-10 Year Treasury Bond ETF, its price developed roughly same until half May, but until now it's falling somewhere to pre-Covid values.
I understand that except U.S. gov. bond interest rate, there are more factors for change in these ETFs, like Infation, Currency rates, that ETF holdings composition is not exact same etc. Though can someone please explain, what is the main thing causing such difference between trading Countries? Is the cause more general and not related only to Bond ETFs?
Thank you very much.