European investors are betting that U.S. bonds have more or less priced in a Fed interest rate hike, so any further strength in the U.S. dollar relative to the euro could compensate them if the U.S. bonds dip on a tighter Fed monetary policy – a stronger greenback would add to USD-denominated Treasury bond yields when converted into the weaker euro for European investors. [Demise of Treasury ETFs Over-exaggerated]
iShares 20+ Year Treasury Bond ETF
Tom Lydon’s clients owns shares of TLT.