Fear of slower economic growth and increased foreign buying have pushed Treasury prices higher in 2016. Kirk Barneby, portfolio manager of the Centre Active U.S. Treasury Fund (DHTRX), said these forces are up against a newly invigorated labor market. ‘There is concern that labor force activity, which is exhibiting momentum, may lead the Fed to place less emphasis on some of the overseas events and continue in its path towards normalization,’ said Barneby. The Centre Active U.S. Treasury Fund is up 3.9% thus far in 2016, according to fund-tracker Morningstar. The $94 million fund has returned 3.7% in the past 12 months, outpacing 99% of its peers in Morningstar’s intermediate-term government bond category. The yield on the 10 year Treasury bond has remained stubbornly below 2% despite Street-beating job growth in the past few months.
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