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Treasury yields are beginning to tick higher after the bout of volatility sent investors to safety. While rates haven’t surged, Treasury bond exchange traded fund investors should prepare for a rising rate environment. “Bond investors and traders should consider preparing for the next wave of volatility, and the potential for rising yields should the economy […]

Leveraged exchange traded funds are finding their way into long-term, strategic investment portfolios. Investors may enjoy augmented returns in the right conditions, but there are risks in holding these products when the stars don’t align. ETFs with a leveraged component typically try to produce  twice or three times the daily performance of their underlying indices. […]

Speculation on Fed tapering has pushed benchmark Treasury yields to a 11-week high. Consequently, bond investors have begun shifting out of long-term debt as rates rise, but the more aggressive trader can capitalize on tumbling Treasuries with inverse exchange traded funds. Bond prices are declining as yields on 10-year Treasury notes rose to as high […]

The government shutdown has the markets scrambling, and a looming U.S. default on debt has left many Treasury bond exchange traded fund investors scratching their heads. According to a recent J.P. Morgan survey, investors are still divided on how long-term U.S. Treasuries will react to a U.S. technical default, Sober Look points out. Some bond […]

Despite the Fed’s determination to stick with its easing program, Treasury bond exchange traded funds weakened as rates spiked and investors turned to the “risk-on” trade. The iShares Barclays 20+ Year Treasury Bond ETF (NYSEArca: TLT) fell 2.0% Thursday. TLT has declined 9.9% year-to-date. The yield spread between 2- and 30-year Treasuries reached 342 basis […]

ETFs designed to short Treasuries are rallying to open the year as U.S. government debt is off to its worst start to a year since 2009. Treasury bonds are down nearly 1% so far in 2013. “It was the biggest decline for a first week since the Treasury was preparing to ramp up debt sales […]

After the multi-decade long rally in the Treasuries market, yields are now hovering around historic low rates. If you are wary of a potential rising rate environment, short duration and inverse Treasury exchange traded funds could help mitigate the risks in a fixed-income portfolio. “With interest rates at all-time lows, potential upside in any new […]

Treasury yields have ticked higher from the summer low as central bank stimulus has improved sentiment and nudged investors into riskier assets. Bond ETF investors can protect themselves from rising interest rates by moving into funds with shorter durations, while ETFs that short Treasuries are a more aggressive play. Yields on the 10-year Treasury nearly […]

Treasury yields fell Monday and bond ETFs rallied as fears Greece will leave the euro continued to rattle global markets. Most European indices were down more than 2% while yields on the 10-year Treasury note traded under 1.8% with investors preferring the safety of U.S. government debt. A frequently highlighted trade over the past several […]

When a trade gets too crowded, it’s usually time to expect the unexpected. Traders who loaded up on bearish bets against U.S. Treasuries using inverse ETFs are getting burned by rising bond prices and falling yields in April. Treasury yields fell to a one-month low on Monday following the disappointing March payrolls report, with yields […]

Inverse exchange traded funds designed to short U.S. Treasuries have been getting more attention lately as yields rise and bond prices pull back. These bearish ETFs, some of which use leverage, include ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT), ProShares UltraShort 7-10 Year Treasury (NYSEArca: PST), ProShares Short 20+ Year Treasury (NYSEArca: TBF) and Direxion […]

Exchange traded funds tracking long-term Treasuries are testing a key support level that if broken could lead to a move higher in yields. Inverse Treasury ETFs are one tool that institutional investors are using to hedge against a potential spike in long-term rates. There are several ETFs that short Treasuries – they rise when bond […]

Recently in the options markets, we have seen renewed interest in call buying in ProShares UltraShort 20+ Year Treasury Bond (NYSEArca: TBT), which is essentially a bearish bet against prices of longer dated Treasury bonds (and simultaneously a play on rising yields). Similarly, assets have flowed out of iShares Barclays 20+ Year Treasury Bond (NYSEArca: […]

Are Treasury exchange traded funds on the verge of a major technical breakdown? U.S. government bond ETFs are giving off weak technical signals as markets await the Federal Reserve announcement and President Barack Obama’s State of the Union address. For example, iShares Barclays 20+ Year Treasury (TLT) was in negative territory along with the S&P […]

Exchange traded funds indexed to long-term U.S. Treasury bonds are on a losing streak due to investor preference for riskier assets such as stocks, and hints of progress on Europe’s debt crisis. Now Goldman Sachs (GS) and some other Wall Street firms are recommending clients short Treasuries to profit from a rise in yields and […]

Yields on the 10-year Treasury note touched 1.9% on Wednesday following a solid auction as investors continue to scramble for safety from the Eurozone debt crisis. The Treasury Department sold $21 billion in 10-year notes on Wednesday at a yield of 1.9%, the lowest level ever at auction, MarketWatch reports. However, we point to bearish […]

Recent activity in bond exchange traded funds shows some investors are positioning to profit if U.S. Treasury yields rise and bond prices decline. ProShares UltraShort Barclays 20+ Year Treasury (NYSEArca: TBT) has seen net inflows of $1.2 billion so far in 2011 through the end of October, according to National Stock Exchange data. The $3.4 […]

About a month ago we noted significant asset inflows in leveraged inverse Treasury-based exchange traded funds, notably Direxion Daily 20 Year Plus Treasury Bear 3X (NYSEArca: TMV) and ProShares UltraShort Barclays 20+ Year Treasury (NYSEArca: TBT). [ETF Chart of the Day] These ETFs are leveraged bets against U.S. long-term Treasury bonds. They rise when bond […]

Exchange traded funds that invest in U.S. Treasury bonds rallied Monday on worries over Europe’s debt bailout. Still, Treasury ETFs have posted losses for October as investors turned more upbeat on the global economy. Conservative investors have thrown billions into Treasury bonds and ETFss so far this year. The iShares Barclays 20+ Year Treasury Bond […]

Exchange traded funds that follow U.S. Treasury bonds continued their steep slide Wednesday on talk European leaders will get a handle on the debt crisis. U.S. 30-year Treasury bonds were down for a six consecutive day, their longest losing streak since 2007, Bloomberg reported Wednesday. Yields on 30-year bonds were trading above 3.2% on Wednesday […]

Exchange traded funds that invest in U.S. Treasury bonds pulled back this week as stocks and commodities benefited from investors regaining some of their appetite for riskier assets. Yields on the 10-year note climbed back above 2% on Friday and Treasury ETFs were in the red. Bond prices and yields move in opposite directions. The […]

Direxion, an exchange traded fund provider best known for its leveraged and inverse products, will execute a reverse split for six of its ETFs. “The total market value of the shares outstanding will not be affected as a result of this reverse split, except with respect to the redemption of fractional shares,” according to a […]

Worries over the economy and global debt levels have caused investors to rush to safe havens such as U.S. Treasury bonds amid the volatility in stocks. Yields on the 10-year Treasury note recently dipped below 2% even though Standard & Poor’s downgraded its triple-A rating on U.S. government bonds. Bond yields and prices move in […]

Stock exchange traded funds bounced on Thursday along with European markets amid talk of a ban on short sales of stocks as officials appear willing to take new steps to ease the credit crisis. SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) jumped almost 4% as the Dow was on track for a nearly 400-point […]

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, […]

Exchange traded funds that invest in Treasury bonds have been strong over the past month as yields decline, but many investors remain worried about the U.S. debt ceiling and higher interest rates. Eric Jacobson, Morningstar’s director of fixed-income research, mentions the key themes to examine in the bond market as the threat of rising interest […]

Another high-profile investor is readying a short bet against U.S. Treasury bonds if prices continue to rise. Noted investor Jim Rogers on Thursday said he plans to sell short Treasury bonds if their prices keep climbing. An investor who shorts bonds profits when their prices decline and yields rise. There is a growing chorus that […]

Bill Gross has reportedly initiated a short position in U.S. government debt in PIMCO’s Total Return Fund after scaling back the fund’s investments in Treasury bonds. Gross, who runs the world’s biggest bond fund, is betting on further weakness in Treasurys, accoroding to reports. PIMCO’s bond guru recently wrote U.S. Treasurys have “little value within […]

History is filled with economic cycles, and the Treasury exchange traded fund (ETF) bonds market may soon come under pressure. The world’s largest bond fund, PIMCO Total Return Fund (PTTRX), reduced its exposure to U.S. government debt to zero last month, reports Joe Morris of Ignites.  Bill Gross, the fund manager, has been vocal about […]