“I just think at some point along the line, people are going to realize it’s absurd to lend money to the United States government for 30 years in U.S. dollars at 3 or 4 or 5 or 6 percent interest,” Rogers said, according to Reuters. “I mean the market is just going to give up. Once (the Fed) … stops buying bonds I’m not sure who’s left to buy bonds at that point.”
The iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) has traded higher this week despite Standard & Poor’s downgrade of its U.S. credit outlook.
S&P downgraded the United States long term credit outlook, taking it from stable to poor, the first time in history. The last time that the United States was looking at a negative rating was in the 1990s, which was averted , says Wall Street Cheat Sheet.
ETFs that profit from rising Treasury yields and lower bond prices include:
- ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT)
- ProShares Short 20+ Year Treasury (NYSEArca: TBF)
- ProShares UltraShort 3-7 Year Treasury ETF (NYSEArca: TBZ)
- ProShares Short 7-10 Year Treasury ETF (NYSEArca: TBX)
- Direxion Daily 7-10 Year Treasury Bear 1x Shares (NSYEArca: TYNS)
- Direxion Daily 20 Year Plus Treasury Bear 1x Shares (NYSEArca: TYBS)
- Direxion Daily 7-10 Year Treasury Bear 3x Shares (NYSEArca: TYO)
- Direxion Daily 20 Year Plus Treasury Bear 3x Shares (NYSEArca: TMV)
Tisha Guerrero contributed to this article.