ETF Chart of the Day: Shorting U.S. Treasuries

August 4th at 1:35pm by Paul Weisbruch, Street One Financial

Fixed income exchange traded fund options have been active this week and so are the underlying ETFs from a volume standpoint.

Bond prices continue to soar (with yields falling) amidst recent equity markets’ weakness.

From a price standpoint, corporate bonds as well as Treasuries (and related long ETFs) continue to trade at new recent highs, day after day.

Those who believe that the price run-up in U.S. Treasuries is due for a pullback, may find Direxion Daily 30 Year Treasury Bear 3X (NYSEArca: TMV), Direxion Daily 10 Year Treasury Bear 3X (NYSEArca: TYO), ProShares Short 20+ Year Treasury (NYSEArca: TBF), ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT) and PowerShares DB 3X Short 25+ Year Treasury (NYSEArca: SBND) effective as potential short term “directional” trades or as a means to hedge exposure against a potential short term reversal in bond prices (and thus an increase in yield).

Not surprisingly, with the recent parabolic move in the Treasuries market, average daily volume in all of the above products has exceeded the norms, as it seems institutional investors have accelerated their usage in such ETF products.

Direxion Daily 30 Year Treasury Bear 3X


For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.