“The data means that the chances for the Fed hiking rates next year increases,” Todd Colvin, a senior vice president at Ambrosino Brothers, said in the article. “The short-end, which is pinned to what the Fed will do, is taking the brunt of the pain. It’s a major curve flattening today.”

Investors who are wary about a flattening yield curve can look at the iPath US Treasury Flattener ETN (NYSEArca: FLAT). FLAT strengthens as the yield curve flattens or takes the inverse of the Barclays US Treasury 2Y/10Y Yield Curve Index, which holds long positions in 2-year Treasury futures and short positions in 10-year Treasuries. However, potential investors should use limit orders to better execute trades as the exchange traded note shows an average daily volume of about 3,500 shares. [Shorter Term Bond ETFs in Focus]

iShares 1-3 Year Treasury Bond ETF

For more information on the Treasuries market, visit our Treasury bonds category.

Max Chen contributed to this article.

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