Surge in Treasury Bond ETF: The PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ) rose 8.8% in just four trading sessions, driven by a significant drop in Treasury yields following a weak U.S. jobs report that indicated only 22,000 jobs were added in August.
Market Expectations for Fed Rate Cuts: The weak jobs data has led markets to fully anticipate a Federal Reserve rate cut at the upcoming meeting on September 17, with expectations for further cuts in October and December, which could boost bond prices, especially for zero-coupon bonds like ZROZ.
Recession Outlook: Despite the market's strong reaction, the likelihood of a U.S. recession in 2025 remains low at 4%, with some analysts suggesting that expected rate cuts could help avert a downturn.
Future of Bond Investments: If the economy avoids a recession, the appeal of long-duration Treasurys may diminish, potentially stabilizing or increasing bond yields, while continued subdued growth and Fed easing could extend the bond rally.
Wall Street analysts forecast ZROZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZROZ is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast ZROZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZROZ is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 64.270
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Current: 64.270
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
