Indicating that investors are comfortable ratcheting up risk in their bearish Treasury bets, the Direxion Daily 20-Year Treasury Bear 3X (NYSEArca: TMV) has seen a steady of influx of new cash. Nearly $150 million since the start of February, to be precise.
TMV attempts to deliver triple the daily inverse returns of the NYSE Current 20-Year U.S. Treasury Index. On May 13, nearly 1.1 million new shares of TMV were created. TMV’s shares outstanding count rose by one million for three weeks ended May 12. [This Bond ETF is Killing It]
Over the past week, volume in TMV has been 17% above the trailing 20-day average while the ETF has added new assets over the past month, according to Direxion data. TMV is the top-performing Direxion leveraged bearish ETF this month, having entered Thursday with a month-to-date gain of almost 17%.
iShares 20+ Year Treasury Bond ETF
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of TLT.