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 after plunging to about 2.7% earlier this month on Eurozone debt jitters. Bond prices and yields move in opposite directions.
Treasuries prices declined Wednesday after the Treasury Department auctioned $21 billion of 10-year notes.
“Yields are rising ahead of new supply and as more positive sentiment about Europe and global growth enter the market,” said Sean Murphy, a trader at Societe Generale, in the Bloomberg report.
The iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) was down more than 2% on Wednesday.
The bond ETF traded as low as $113.54 a share on Wednesday, down about 9% from its 52-week high of $125.03 set earlier this month.
Traders have been scaling up their bearish bets against Treasury ETFs. [Shorting Treasuries with ETFs]
Inverse ETFs that profit when Treasuries fall include ProShares Short 20+ Year Treasury (NYSEArca: TBF) and ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT).
iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT)
