SHORT ANSWER
The core idea
Bond ETFs trade continuously on exchanges while many underlying bonds trade over the counter and sometimes infrequently.
THE MECHANISM
What is happening underneath
During stress, the ETF price can react faster than stale or indicative prices on individual bonds, creating apparent discounts or premiums.
MARKET INTERPRETATION
How investors should read it
That difference can represent price discovery rather than a simple failure of the ETF structure.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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