Personal Investments • VBTLX Price in response to interest rate cuts

If I understand correctly, the price of VBTLX would be expected to rise roughly 6% in response to 1% interest rate cut.

Is the price relationship truly this formulaic? E.g. in the absence of other Fed interest rate moves, would 2 points of cuts reliably produce a ~12% price increase in short order (~1 month)? Or could it take much longer (months) or not happen at all?

I would expect the price to start adjusting before cuts based on anticipation of cuts (as it does, daily); but I don’t know how to square the anticipatory dynamic with the “1% cut, 6% price increase” rule of thumb I’ve seen.

Thanks
Tim

Statistics: Posted by rossington — Sun Jun 23, 2024 5:02 am — Replies 9 — Views 813