PGIM Ultra Short Municipal Bond ETF Price & Performance (PUSH)

The financial markets are observing a potential shift as German 10-year bund yields are expected to outperform U.S. Treasuries. This comes after a peak in U.S. deficit optimism and deregulation momentum. Additionally, non-U.S. investors have sold U.S. Treasuries for three consecutive months, signaling changing global investment preferences.1

Short-term bond ETFs continue to see massive inflows, with over $16 billion invested this year. Funds like iShares 0-3 Month Treasury Bond ETF and SPDR Bloomberg 1-3 Month T-Bill ETF are leading the trend. These inflows highlight investor caution amid economic concerns and stock market volatility, reflecting a flight to safer assets.2

Municipal bonds have underperformed U.S. Treasuries recently, with yields climbing and supply increasing. Despite this, high-yield muni funds have seen steady inflows. Analysts note that elevated maturities and coupons are providing liquidity, while snug spreads prompt some investors to offload securities in sectors like airports and hospitals.1