Deficit Gridlock, Europe Woes Push Treasury ETFs Higher | Page 2 of 2 | ETF Trends

Due to the increasing demand, yields on 10-year notes hit a 1.67% low in September and habr only traded as high as 2.67% for the year back in April when the risk of a Greek default had yet to surface. Meanwhile, short term bond yields have briefly traded into negative territory during the height of volatility in late summer. [Treasury ETFs Catch Bid on Safety Trade]

According to government data, foreign holdings of Treasuries rose to a record $4.66 trillion in September. China, the largest foreign holder of U.S. sovereign debt, raised its holdings of long-term notes and bonds by $20.7 billion, or 1.8%, to $1.14 trillion in September. Japan, the second largest foreign holder, increased its holdings by 2.2% to $956.8 billion. [Treasury ETFs and the Supercommittee Deadline]

According to the National Stock Exchange, fixed-income long ETFs garnered $33.5 billion in new net assets in the first 10 months of the year, around 33% of total net inflows for all ETFs.

The rally in Treasuries has gone against traders who positioned for rising yields with inverse bond ETFs. [Traders See Yields Rising]

iShares Barclays 20+ Year Treasury Bond

For more information on the Treasuries market, visit our U.S. Treasuries category.

Max Chen contributed to this article.