iPath Debuts 8 New Treasury ETNs

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iPath, a unit of Barclays PLC, launched eight exchange traded notes (ETNs) that track the Treasury market, signaling the firms entry into fixed income investment tools.

Fixed-income is hot right now. Investors seeking safe-havens are on the hunt for Treasuries, despite yields at 15-month lows on the 10-year. Investors emboldened by a strong earnings season are making a play for corporate and high-yield debt. [The Appeal of Treasury ETFs.]

Among the new launches is an interesting pair of ETNs that allow investors to bet on whether the yield curve will grow steeper or flatten out:

• iPath US Treasury Steepener (NYSEArca: STPP)
• iPath US Treasury Flattener (NYSEArca: FLAT)

Steve Dew at Index Universe says that FLAT takes long positions in two-year Treasury futures and short positions in 10-year futures.

The ETN pairs include:

• iPath US Treasury 10-year Bull ETN (NYSEArca: DTYL)
• iPath US Treasury 10-year Bear ETN (NYSEArca: DTYL)

• iPath US Treasury 2-year Bull ETN (NYSEArca: DTUL)
• iPath US Treasury 2-year Bear ETN (NYSEArca: DTUS)

• iPath US Treasury Long Bond Bull ETN (NYSEArca: DLBL)
• iPath US Treasury Long Bond Bear ETN (NYSEArca: DLBS)

ETNs and ETFs share many similarities,  but they differ in key respects. Read about them here.

Tisha Guerrero contributed to this article.