(CBU7) iShares VII Public - Ratings and Ratios

The iShares $ Treasury Bond 3-7yr UCITS ETF (CBU7) is designed to track the ICE U.S. Treasury 3-7 Year Bond Index, providing investors with exposure to a specific segment of the U.S. government bond market. By replicating the benchmark index, the fund aims to deliver returns that are in line with the performance of the underlying bonds, minus fees and expenses.

To achieve its investment objective, the fund invests in a diversified portfolio of fixed income securities that comprise the ICE U.S. Treasury 3-7 Year Bond Index. This approach enables the fund to provide investors with a cost-effective and efficient way to gain exposure to the U.S. Treasury bond market, with a focus on the 3-7 year maturity segment.

From a technical analysis perspective, the funds price has been trending downward, with its 20-day, 50-day, and 200-day simple moving averages (SMA) indicating a bearish signal. The current price is 120.66, with an average true range (ATR) of 0.72, representing a volatility of 0.59%. Given the current technical setup, it is likely that the funds price will continue to face resistance at the 121.52 (SMA20) and 122.52 (SMA50) levels.

Fundamentally, the fund has a significant asset base, with approximately 5.77 billion EUR in assets under management (AUM). This scale can provide investors with a high degree of liquidity and potentially lower trading costs. Considering the current interest rate environment and the shape of the yield curve, it is likely that the demand for high-quality government bonds, such as U.S. Treasuries, will remain strong. As a result, the fund is likely to continue to attract investor inflows, supporting its AUM and potentially stabilizing its price.

Forecasting the funds future performance, we can expect the price to be influenced by a combination of technical and fundamental factors. Based on the current technical setup, we can anticipate a potential bounce off the 52-week low of 119.94, with a target price of 122.00 in the short term. However, if the bearish trend persists, the price may continue to decline towards the 119.00 level. From a fundamental perspective, the ongoing demand for U.S. Treasuries and the funds scale are likely to provide a floor for the price. As a result, our forecast suggests that the funds price will stabilize in the range of 119.00-123.00 over the next few months.