I own Fidelity intermediate term treasuries
The Fed cut the rate on overnight loans. You're invested in an intermediate-term bond fund. The former has no necessary effect on the latter, especially since once you get to the prices of bonds with more than a few months to maturity, the market sets the price (yield), not the Fed.
-- Rich Carreiro snipped-for-privacy@rlcarr.com
The "duration" of that fund is on the order of 6 yrs, so if rates *uniformly* moved by, say, 10bps down, you could expect the value of your fund to go up by approx 0.6% (which is still only about 6 cents per share on that fund), but that's only a rough approximation, and there's a reason it's called a yield curve, not a singular point yield - it doesn't all move the same way at the same time.
The rates on intermediate treasuries already dropped end of August/ beginning of September. You might say the Fed Rate cut just caught up to the real rate cut caused by market forces.
Bond funds in general have done poorly this year. Funds of all lengths could be holding subprime. Only pure treasuries may be immune.
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