Eventual rate hikes may force bond holders to sell bonds at a fraction of what they paid for, with longer-dated Treasuries most at risk — higher rates diminish the total value of a bond holding. [ETF Chart of the Day: Shorting U.S. Treasuries]
For those who believe the bond run is due for a pullback, inverse Treasury funds that profit from lower bond prices include:
- ProShares Short 20+ Year Treasury (NYSEArca: TBF)
- ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT)
- Direxion Daily 30 Year Treasury Bear 3X (NYSEArca: TMV)
- Direxion Daily 10 Year Treasury Bear 3X (NYSEArca: TYO)
- PowerShares DB 3X Short 25+ Year Treasury (NYSEArca: SBND)
ProShares Short 20+ Year Treasury
For more information on the Treasury market, visit our Treasury bonds category.
Max Chen contributed to this article.