ProShares Ultra 7-10 Year Treasury seeks daily investment results, before fees and expenses and interest income earned on cash and financial instruments, that correspond to twice (200%) the daily performance of the Barclays Capital 7-10 Year U.S. Treasury Index.
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Monday, August 13, 2012, 9:55 AM
A chart of yields across a number of fixed income sectors (via David Schawel). High yield bonds may be pricey on an absolute basis, but the spread to Treasurys remains a relatively large one. As for Treasurys themselves, they're long on duration, short on yield: return-free risk.
Friday, August 10, 2012, 2:58 PM
The slightest of cracks in the long-running Treasury bull market had investors flocking to a popular leveraged bond short fund (TBT) yesterday, with nearly 100K call options trading hands. Foiled again (for now) - after popping as high as 1.72% yesterday (from below 1.4% in July), the 10-year yield has fallen back to 1.64%. TBT -1.4%.
Tuesday, August 7, 2012, 9:25 AM
Long-term Treasury yields climb to their highest level in a month, the 10-year up 5 bps to 1.62%, the long bond up 6 bps to 2.72%. A bit has been made about the divergence between stocks and Treasury yields - perhaps it will be resolved through falling Treasury prices, rather than lower stock values.
18 Comments[U.S. Economy]
Monday, August 6, 2012, 8:58 AM
"Mind the gap," as stocks and Treasury yields - moving in lockstep for much of the year - have diverged, the 10-year Treasury yield remaining near its 2012 low as stocks rally since early June. (via tradefast)
Friday, August 3, 2012, 12:13 PM
Treasury prices plunge (yields fly higher) following the big rally in Europe and the NFP report. The future is unknown, but a buyer of the 10-year Treasury at 1.5% requires an unceasing stream of bad news to make money, while being open to getting fried on just the slightest bit of economic sunlight. SPY pulls far ahead of TLT in YTD returns.
11 Comments[U.S. Economy]
Tuesday, July 31, 2012, 11:30 AM
Michael Harkins offers a quick lesson in duration, saying a buyer of the 10-year Treasury at 1.5% will get crushed with just a move back in yields to 2.5%. The bond market is a fabulous bubble, he says, growing in size as those who went short at the then impossibly low rate of 2.5% a year ago lack the conviction to do the same at 1.5%.
22 Comments[U.S. Economy]
Tuesday, July 24, 2012, 2:47 PM
Long-dated Treasury yields fall to record lows, the 30-year off 4 bps to 2.46%, the 10-year off 3 bps to 1.40%. While 2-year yields in safe havens like Switzerland (-0.46%) and Germany (-0.06%) fall to negative territory (with even France at 0.34%), 2-year U.S. Treasurys stubbornly remain at 0.21% (huge demand at auction earlier). And oh yeah, TLT has pulled ahead of SPY YTD (chart).
3 Comments[U.S. Economy]
Tuesday, July 10, 2012, 2:52 PM
Treasury prices reverse losses and turn higher as Cummins provides a grim picture of global economic growth. The 10-year yield dips under 1.50%, within range of its modern-era low of 1.44%. The long bond yield falls to 2.60 (record low is 2.50%). TLT and SPY are neck and neck for the year, both up over 6%.
7 Comments[U.S. Economy]
Tuesday, July 10, 2012, 9:42 AM
Merrill Lynch quietly tells its clients to prepare for a fundamental geopolitical shift in which western (mostly American) dominance crumbles with nothing ready to take its place. Ideas: Buy ETFs to guard against inflation and higher taxes set to be unleashed by desperate governments. Abandon the idea Treasurys are a special risk-free asset class, and look at the paper of places like Australia and Singapore.
7 Comments[Global & FX, U.S. Economy]
Monday, July 9, 2012, 10:10 AM
There's $10.5T in U.S. government debt and still not enough to go around. Bond dealers are hoarding the good stuff, offering just $7.2B in Treasurys to the Fed (buying due to The Twist) in June vs. $12.1B/day in October. "People are not willing to sell Treasurys," says a fund manager. Let yields rise 100 basis points and we'll see who's not willing to sell. (see also)
17 Comments[U.S. Economy]
Monday, July 9, 2012, 8:36 AM
ETF flows last week show a chunky amount going into Oil Services, the OIH adding nearly 6% in AUM, a significant jump for a fund with over $1B in assets. Among the losers was a eurozone stock fund, EZU, losing almost 10% in AUM. Medium-to-long duration Treasury bond funds saw significant outlfows as well, TLT losing 2.5% and UST 47%.
1 Comment[Energy, U.S. Economy, Global & FX]
Tuesday, July 3, 2012, 8:55 AM
A look at the performance of key ETFs for U.S. fixed income during H1 shows corporate credit - both investment grade (LQD) and high yield (HYG) - providing the best returns. They were nearly matched by long-term Treasurys, but without TLT's wild ride. Municipals (MUB) performed more like stocks, up big early, but giving up a lot of those gains.