Treasury ETF Volatility in Advance of Fed Tightening

Even before the volatility jump in TLT and corresponding bump in options prices, some traders had been preparing for higher rates in bold fashion. Since the start of the third quarter, theProShares UltraShort 20+ Year Treasury (NYSEArca: TBT) and the Direxion Daily 20-Year Treasury Bear 3X Shares (NYSEArca: TMV) have added $463.2 million and $124.7 million, respectively. Despite declining Treasury yields, TBT and TMV have seen inflows of $1.26 billion and $279 million this year.

iShares 20+ Year Treasury Bond ETF

Tom Lydon’s clients own shares of SPY and TLT.