Paul Weisbruch, head of ETF/options sales and trading at Street One Financial, on Tuesday said there were bearish-looking flows in U.S. Treasuries last week as iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) saw outflows while Direxion Daily 20 Year Plus Treasury Bear 3X Shares saw huge volumes on the buy side.
On Monday in options markets, the trend continued as bullish call buyers surfaced in ProShares UltraShort Barclays 20+ Year Treasury.
“It seems apparent that investors are looking for short exposure to long-term U.S. Treasuries (which would mean they are looking for prices to drop and yields to rise), and perhaps this is a reflection of certain investors changing their portfolio exposure away from fixed income and perhaps into higher yielding asset classes such as equities,” Weisbruch said in a note Tuesday.
Treasury yields are very low by historical standards, with the 10-year note yielding just above 2%.
Direxion Daily 20 Year Plus Treasury Bear 3X Shares
