Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Leveraged & Inverse ETF Channel
  2. Rising Treasury Yields? There’s an ETF for That
Leveraged & Inverse ETF Channel
Share

Rising Treasury Yields? There's an ETF for That

Ben HernandezMar 22, 2021
2021-03-22

It’s good to be a bear lately when it comes to the rising tide of benchmark Treasury yields. The increase is feeding into inverse trading profits with funds like the Direxion Daily 20+ Yr Trsy Bear 3X ETF (TMV A).

While the Federal Reserve may be trying to keep rates at bay, the long-term prospect of rising rates is still in the back of the capital markets’ minds. In the last trading session, yields crept higher following the Fed declining to extend a rule that would allow banks to hold less capital against Treasuries and other holdings.

“The 10-year U.S. Treasury yield hovered around its 14-month high on Friday after the Federal Reserve on Friday declined to extend a rule expiring at the end of the month that relaxed the supplementary leverage ratio for banks during the pandemic,” a CNBC article reported. “The yield on the benchmark 10-year Treasury note rose to 1.732% at around 4:30 p.m. ET. The yield on the 30-year Treasury bond rose to 2.451%. Yields move inversely to prices.”

TMV seeks daily investment results before fees and expenses of 300% of the inverse of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. TMV invests in swap agreements, futures contracts, short positions, or other financial instruments that provide inverse or short leveraged exposure to the index, which is a market value weighted index that includes publicly issued U.S. Treasury debt securities that have a remaining maturity of greater than 20 years.

So far in 2021, TMV is up 54%.

TMV Price % Change

Betting On Long-Term Inflation Prospects

TMV can be used as a trader’s tool to bet on the long-term inflationary environment. Right now, investors are cognizant that in a healing economy, rates will eventually have to push higher.

Fed Chair Jerome Powell recently said that if the economic environment warrants a rise in rates, then the appropriate adjustment in policy will follow. In the past couple of weeks, inflation fears sparked have sparked equities sell-offs.

“Reactions indicate that markets either see longer-term risks to inflation, or near-term risks of the Fed wavering from this new approach,” said Gary Pzegeo, head of fixed income at CIBC Private Wealth.

“We’re talking about yields rising from levels so low that a year ago it would have been inconceivable that U.S. Treasury yields can actually go so low, but alas, equity markets don’t like yields rising very quickly and hence we’ve seen these jitters across the board,” he said further.


Content continues below advertisement

For more news and information, visit the Leveraged & Inverse Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X