Treasury exchange traded funds have been kicked lower this week as bond yields rise, but 5-year note yields have surged the most after what was seen as a weak auction.
The ETF’s next key support line appears to be at the 50-day moving average.
Yields on 5-year notes were trading around 1.69% on Wednesday afternoon, up from 1.39% at the end of last week. Bond prices and yields move in opposite directions.
Treasuries declined Wednesday after Greek lawmakers voted in favor of austerity measures, unwinding some of the safe-haven trade.
The dramatic rally in 5-year note yields means short-term rates could be heading higher.
iShares Barclays 3-7 Year Treasury Bond
5-Year Note Yields