The weakness in the U.S. dollar has also made it more difficult for some foreign buyers to invest into Treasuries since it made it more expensive to hedge currency risks. Some have opted to buy European or Asian government debt instead.

Related: Attractive Yield-Generating Emerging Market Bond ETFs

Traders who are wary of further declines in the Treasury market or higher yields ahead may also incorporate a small bearish or inverse bond ETF strategy to a diversified fixed-income portfolio to hedge the market risks.

For example, the ProShares Short 20+ Year Treasury (NYSEArca: TBF) takes the simple inverse or -100% daily performance of the Barclays U.S. 20+ Year Treasury Bond Index. The ProShares UltraShort 20+ Year Treasury (NYSEArca: TBT) tries to reflect the -2x or -200% daily performance of the Barclays U.S. 20+ Year Treasury Bond Index. Additionally, the Direxion Daily 20-Year Treasury Bear 3X (NYSEArca: TMV) tracks the -3x or -300% daily performance of the NYSE 20 Year Plus Treasury Bond Index.

For more information on the fixed-income markets, visit our bond ETFs category.

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