As coronavirus jitters keep the markets on edge, Treasury yields keep hitting new lows as more investors pile into safe haven assets like U.S. government bonds. China’s National Health Commission reported last Friday that 75,465 cases of the virus have been confirmed in addition to the 2,236 deaths nationwide virus is already responsible for.
“There isn’t anything the data can reveal on the positive side which would be sufficient to offset the coronavirus jitters that have once again weighed on risk assets and pressured rates lower,” Ian Lyngen, BMO’s head of U.S. rates, said in a note on Friday.
As a result of the safe haven flight, Treasury yields have moved to record lows with the 30-year note pushing below the 2% mark before settling at 1.892% last Friday. Moving towards the shorter end of the curve, the 10-year yield has already fallen 50 basis points this year.
4 ETFs to Trade Treasury Note Moves
Investors salivating at an opportunity to trade Treasurys can look at these four leveraged ETFs to trade:
- 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.
- 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.
- 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.
- 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.
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