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, day after day.
Those who believe that the price run-up in U.S. Treasuries is due for a pullback, may find Direxion Daily 30 Year Treasury Bear 3X (NYSEArca: TMV), Direxion Daily 10 Year Treasury Bear 3X (NYSEArca: TYO), ProShares Short 20+ Year Treasury (NYSEArca: TBF), ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT) and PowerShares DB 3X Short 25+ Year Treasury (NYSEArca: SBND) effective as potential short term “directional” trades or as a means to hedge exposure against a potential short term reversal in bond prices (and thus an increase in yield).