Shares of the extremely popular iShares Barclays 20+ Year Treasury Bond ETF ($TLT) are down 1.3% today and are trading at the lowest level in over two months. This action has occurred as the yield on the 30-Year Treasury yield is back to 2.83%, well above the 2.45% hit just a few weeks ago.
As money flows into stocks and out of bonds the price of U.S. Treasuries will fall and yields will increase. ETFs that invest in U.S. bonds will also fall in price as they have an inverse relationship to the yield on the Treasuries.
As TLT and its peers fall, the ETFs that are short U.S. Treasuries will rise. The ProShares Short 20+ Year Treasury ETF ($TBF) is up 1.4% today and have risen 6% in the last two weeks. Investors that are ready to give up on TLT can either sell their shares or be more aggressive and sell and turn around and go long TBF.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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