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Barclays US Treasury Index

11/07/2012

Barclays US Treasury Index is yielding 0.91% with duration of 5.5 years.  A 100bps increase in rates would wipe out 6 yrs of return.  While rates remain low, investors should consider the amount of interest rate risk they have in their portfolios. A natural hedge is floating rate assets or other short duration spread product.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.