Treasury Yields Move Higher as Markets Shrug off Iran Retaliation

Investors turned up the dial on safe haven assets to start the week’s trading session after a U.S. airstrike killed a top Iranian general last week, but Iran’s latest retaliatory measures weren’t enough to shake the markets, sending Treasury yields higher.

A CNBC report noted that the “yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.84%, while the yield on the 30-year Treasury bond also rose to around 2.32%.”

Per the report, Iran launched “more than a dozen ballistic missiles against multiple bases housing U.S. troops in Iraq in the early hours of Wednesday morning, according to Pentagon officials. There were no reports of casualties so far and the attacks did not target oil infrastructure, which is better than feared.”

U.S. President Donald Trump took to Twitter to quell any fears that the retaliation resulted in any casualties.

““All is well! Missiles launched from Iran at two military bases located in Iraq,” Trump tweeted. “Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well equipped military anywhere in the world, by far! I will be making a statement tomorrow morning.”

For investors who want to trade Treasury note moves, here are four ETFs to consider:

1. Direxion Daily 7-10 Year Treasury Bull 3X Shares (NYSEArca: TYD): seeks daily investment results, before fees and expenses, of 300% of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to ten years.
2. Direxion Daily 7-10 Year Treasury Bear 3X Shares (NYSEArca: TYO): seeks daily investment results before fees and expenses of 300% of the inverse (or opposite) of the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than seven years and less than or equal to ten years.
3. Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSEArca: TMF): seeks daily investment results, before fees and expenses, of 300% of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than 20 years.
4. Direxion Daily 20+ Year Treasury Bear 3X ETF (NYSEArca: TMV): seeks daily investment results before fees and expenses of 300% of the inverse (or opposite) of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than 20 years.

For more market trends, visit ETF Trends.