Many investors are talking about the recent jump in bond yields and how U.S. Treasury ETFs are set to be toasted by an improving economy and rising inflation.
However, one technical analyst spies an opportunity for short-term traders to go against the crowd with a long position in a Treasury bond ETF. [Short ETFs for Rising Rates]
“The past week has seen the iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) correct back to its 200-day exponential moving average, a level which was last tested in July last year. That retreat was followed by uptrend reassertion,” said Tarquin Coe at Investors Intelligence.
The $3.1 billion bond ETF is down about 5% over the past month. Bond prices and yields move in opposite directions. [Shorting Treasury Bonds with ETFs]