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Treasury sell-off gathers steam, 10-year yield heads to 3%

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Comments (11)
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    Hilsenrath, where for art though, Hilsenrath.....
    5 Sep 2013, 12:17 PM Reply Like
  • th3decider
    , contributor
    Comments (365) | Send Message
     
    Everyone keep in the mind this last half year has been one of the largest bond yield spikes in decades yet the Fed is still buying $1 trillion a year and the major foreign central banks are not even selling yet. Just imagine a scenario where these two factors arent true...
    5 Sep 2013, 12:39 PM Reply Like
  • Investonut
    , contributor
    Comments (5) | Send Message
     
    I don't fully understand the apparent price depreciation in TBT - the value previously hit $82.80 or so when interest rates were slightly less than the current 2.98%. The rate of increase in TBT seems to trail the rate of increase in rates by quite a bit. Perhaps it has to do with fund flows in and out?

     

    I'd appreciate an explanation from some knowledgeable member of seeking alpha.

     

    Thanks
    5 Sep 2013, 12:46 PM Reply Like
  • th3decider
    , contributor
    Comments (365) | Send Message
     
    It because TBT is a levered ultra short fund which means most the people are like you, or me at one time (no offense, I use to be in some of these funds too), but they don't know the actual details of how the fund operates. People just know that it is short treasuries so they pile in occasionally, and then pile out. While yes it is levered and short treasuries you will not find a perfect correlation between that and the 10 year rate since TBT is a freely traded security and its ups and down can also simply reflect market herd sentiment in action. Just like oil stocks will go up when oil price goes up but it is not a perfect correlation and there are other factors in play.
    5 Sep 2013, 01:31 PM Reply Like
  • Broken Clock
    , contributor
    Comments (126) | Send Message
     
    http://bit.ly/18G2CUR
    5 Sep 2013, 02:04 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    Leveraged ETFs suffer from volatility drag. They track best when the underlying makes a straight linear move from price X to price Y. Their tracking deteriorates if the underlying moves up and down a lot as it moves from price X to price Y.
    5 Sep 2013, 04:26 PM Reply Like
  • mobyss
    , contributor
    Comments (2042) | Send Message
     
    At this pace we're looking at 3.5% by Christmas
    5 Sep 2013, 02:04 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4013) | Send Message
     
    Look for a flight to safety when and if the US strikes Syria and Hezbollah lets loose on Israel.
    5 Sep 2013, 02:08 PM Reply Like
  • Yorkville Trading
    , contributor
    Comments (175) | Send Message
     
    The flirting is over.
    5 Sep 2013, 05:09 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (970) | Send Message
     
    stagflation
    6 Sep 2013, 07:11 AM Reply Like
  • june1234
    , contributor
    Comments (2650) | Send Message
     
    Its all about Syria right now
    6 Sep 2013, 08:06 AM Reply Like
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