Treasury ETFs Hit All-Time Highs in Stock Rout

Exchange traded funds indexed to U.S. Treasury bonds reached fresh all-time highs on Wednesday as the Dow shed more than 100 points on the worsening Eurozone debt crisis.

Yields on the 10-year note dropped to 1.65%, a new record low. Bond prices and yields move in opposite directions.

In bond ETFs, iShares Barclays 7-10 Year Treasury Bond Fund (NYSEArca: IEF) and iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) rallied to their highest levels ever. TLT rose 2% in early trading Wednesday. [Treasury Bond ETFs: How Much Lower Can Rates Fall?]

In currencies, the euro fell to a two-year low on concerns over Spain and the health of its banking sector. The iShares MSCI Spain (NYSEArca: EWP) slid 2.5%. The single-country ETF has dropped to its lowest level since 2003.

PowerShares US Dollar Index Bullish (NYSEArca: UUP) climbed to a 52-week high on Wednesday as investors moved into safe-haven currency and bond ETFs. The dollar ETF is on track for a gain of 5% in May and has only seen four losing sessions for the month. [Dollar ETF Rallies 5% in May Breakout]

iShares Barclays 20+ Year Treasury Bond Fund


Categories: Fixed-Income
Tags: , ,

Post Comment