If one looks at simple technicals of either fund, it is obvious that intermediate term treasury bonds have in the few sessions since the U.S. elections and both UST and IEF are on pace to clear their highest price levels since August. With a 30 day SEC yield of only 1.30% in the case of IEF, the recent flows and price action in these intermediate term treasury bonds via UST likely can be translated as institutional investor fear of equities, and the desire to be in more of a “safe haven with some ability to produce yield, albeit a low yield.”
Since UST only averages about 440,000 shares traded daily and nearly 15 million shares traded in just one session at the very beginning of this month, we will be mindful of the action in both UST and IEI heading into next month and ultimately year’s end to see if there is any reversal in sentiment here via observable fund flows.
ProShares Ultra 7-10 Year Treasury
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