Yields on the 10-year Treasury note climbed above 1.6% on Tuesday after dipping below 1.4% in July. Yields have been depressed in 2012 on the flight to safety and the Federal Reserve’s commitment to keep interest rates low. Bond yields and prices move in opposite directions.
“Treasury yields are just too low,” said Scott Minerd, chief investment officer of Guggenheim Partners, in the Bloomberg article. “What’s been surprising is that the economy is still moving along, despite the headwinds in the world economy. Yields will likely rise into the year end with risk markets rallying.”
There are several ETFs that bet against Treasury bonds and profit from rising yields. For example, trading volume in ProShares Short 20+ Year Treasury (NYSEArca: TBF) has picked up lately. The inverse Treasury ETF climbed above its 50-day moving average on Tuesday. [Short ETFs: U.S. Treasury Bonds]
iShares Barclays 20+ Year Treasury Bond Fund
