With rate volatility and inflation uncertainty, investors are cutting long-end exposure and moving into intermediate government bonds to get a yield pickup while avoiding duration volatility. She highlights BlackRock's GOVM ETF as the vehicle for this positioning.
TIPS are seeing increased demand because investors can lock in around 3% real yields plus inflation protection while inflation uncertainty remains elevated.
Long-bond yields above 5% have drawn investors into TLT and 20-year Treasury ETFs, and the Treasury buyback announcement is intended to cap long rates. She sees this as a reason to add duration through long-term Treasuries.