ETF Trends
ETF Trends

The 10-year U.S. treasury note went above the 5.00% mark for the first time since August 2006, so what does this mean for exchange traded funds (ETFs)?  Jon C. Ogg for 24/7 Wall Street reports the iShares Lehman 20+ Year Treasury (TLT) price moves inversely with the direction of interest rates, so as rates rise, it’s price falls.  This intermediate to longer-term maturity ETF is down 5% over the past month.  The iShares Lehman 7-10 Year Treasury (IEF) is down 3% for the month.

The 10-year note is also a key for mortgage rates, so this may also add to the drop in housing stocks as well. Average mortgage rates have risen 0.14% this week alone.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.