For those looking for a supercharged bet against Treasury prices but are willing to taking on the added risk, ProShares UltraShort 7-10 Year Treasury (NYSEArca: PST), which tries to track two times the inverse, or -200%, daily performance of the Barclays U.S. 7-10 Year Treasury Bond Index, is up 14.8%, and the Direxion 7-10 year Treasury Bear 3x (NYSEArca: TYO), which takes a triple inverse, or -300%, approach is gained 21.1% since May 2.
Potential traders, though, should be aware that the inverse and leveraged products try to achieve their objective on a daily basis, and due to compounding of daily returns, the performance of the ETFs may diverge from the target return over extended periods, especially during volatile market conditions. [Inverse Treasury ETFs Help Hedge Against Rising Rates]
Due to months of intense speculation regarding the arrival of tapering, investors pulled $22 billion from long-duration bond ETFs in the first 11 months of the year while plowing $22 billion into short-duration funds.
For more information on Treasuries, visit our Treasury bonds category.