iShares Core U.S. Treasury Bond ETF (IBIT) is an exchange-traded fund (ETF) that tracks the performance of the Bloomberg US Treasury Bond Index. The fund invests in a broad range of U.S. Treasury bonds with maturities ranging from 1 to 30 years. IBIT is a popular choice for investors seeking exposure to the U.S. Treasury market, as it offers a low-cost and diversified way to do so.
The price of IBIT is determined by the value of the underlying Treasury bonds. As interest rates rise, the price of Treasury bonds typically falls, and vice versa. This is because investors are less willing to pay a premium for a bond that pays a lower interest rate than they could get from a new bond with a higher interest rate. As a result, the price of IBIT is inversely correlated to interest rates.
